to minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to…

to minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments?\na. both purchases and payments should be made early in the billing cycle.\nb. both purchases and payments should be made late in the billing cycle.\nc. payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.\nd. purchases should be made early in the billing cycle, and payments should be made late in the billing cycle.

to minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments?\na. both purchases and payments should be made early in the billing cycle.\nb. both purchases and payments should be made late in the billing cycle.\nc. payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.\nd. purchases should be made early in the billing cycle, and payments should be made late in the billing cycle.

Answer

Brief Explanations:

The daily - balance method calculates finance charges based on the balance at the end of each day. Making payments early reduces the average daily balance, and making purchases late means they are included in the balance for fewer days, thus minimizing finance charges.

Answer:

C. Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.