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Jessica's credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. The following table details Jessica's use of her credit card in the month of October:

[tex]\[
\begin{tabular}{|c|r|c|}
\hline
Date & Amount (\$) & Transaction \\
\hline
10/1 & 1,240.55 & Beginning balance \\
\hline
10/2 & 36.43 & Purchase \\
\hline
10/10 & 75.00 & Payment \\
\hline
10/13 & 131.79 & Payment \\
\hline
10/20 & 41.52 & Purchase \\
\hline
10/22 & 25.00 & Purchase \\
\hline
\end{tabular}
\][/tex]

What is Jessica's adjusted balance for October?

a. \[tex]$1,136.71
b. \$[/tex]1,033.76
c. \[tex]$1,140.55
d. \$[/tex]1,240.55



Answer :

GinnyAnswer
To determine Jessica's adjusted balance for October, we'll follow these steps:

1. Starting Balance:
On October 1st, Jessica's initial balance was [tex]$1,240.55. 2. Transactions in chronological order: - On October 2nd, she made a purchase of $[/tex]36.43.
- On October 10th, she made a payment of [tex]$75.00. - On October 13th, she made an additional payment of $[/tex]131.79.
- On October 20th, she made another purchase of [tex]$41.52. - On October 22nd, she made one more purchase of $[/tex]25.00.

3. Updating the balance with each transaction:
- After the purchase on October 2nd:
[tex]\[ 1240.55 + 36.43 = 1276.98 \][/tex]
- After the payment on October 10th:
[tex]\[ 1276.98 - 75.00 = 1201.98 \][/tex]
- After the payment on October 13th:
[tex]\[ 1201.98 - 131.79 = 1070.19 \][/tex]
- After the purchase on October 20th:
[tex]\[ 1070.19 + 41.52 = 1111.71 \][/tex]
- After the purchase on October 22nd:
[tex]\[ 1111.71 + 25.00 = 1136.71 \][/tex]

4. Final Adjusted Balance:
After accounting for all the transactions (purchases and payments), Jessica's adjusted balance for October is:
[tex]\[ 1136.71 \][/tex]

Therefore, the correct answer is:
a. [tex]$\$[/tex]1,136.71$

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