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Which of the Following Calculation Methods Would Produce More Interest

Question 108

Multiple Choice

Which of the following calculation methods would produce more interest income for a person who uses his or her credit card very frequently?


A) Average daily balance including new purchases
B) Effective daily balance excluding new purchases
C) Two-cycle average daily balance including new purchases
D) Double declining average daily balance excluding new purchases
E) Annual percentage rate method including new purchases

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