Roger has a credit card with an APR of 19.40% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of June
Date 611 6/6 Amount ($) Transaction 265.40 Beginning balance 90.00 Payment 43.33 Purchase 37.71 Purchase 6/16 6/22 If Roger's finance charge for June is $3.56, which method of calculating the finance charge does Roger's credit card company use?
daily balance method
b. adjusted balance method previous balance method
d. there is not enough information to determine which method was used

The daily balance method of calculating credit card's finance charge uses the actual daily balance of the billing cycle instead of being based on an average of the balance throughout the billing cycle.

Using the daily balance method, the finance charges are calculated by summing daily balance multiplied by the daily rate or APR/365.

Data and Calculations:

APR = 19.40%

Monthly APR = 1.62% (19.4%/12)

Daily APR = 0.053%

Date Transaction Amount ($)

6/6 Beginning balance 90.00

6/11 Payment 43.33

6/16 Purchase 37.71

6/22 Purchase 265.40 $349.78

Finance charge = 3.56

Ending balance = $353.34

Thus, the method of calculating the finance charge that Roger's credit card company uses is A. daily balance method.

Learn more about calculating credit card finance charges at https://brainly.com/question/4403314