Getting back in time, when Nancy wa just about to open her account, and assuming she could choose among credit sources that offered differednt monthly balance determinations, and assunming further that Nancy would increase her outstanding balance over time, whcih credit source woud you recommend? And why?

It would be based on what I got:

AVERAGE DAILY BALANCE METHOD

Beginning balance for November $600

Nov 1-Nov 4 4 days 600 + 0 = 600 600 X 4 = 2400
Nov 5-Nov 9 5 days 600 + 80 = 680 680 X 5 = 3400
Nov 10-Nov 14 5 days 680 – 200 = 480 480 X 5 = 2400
Nov 15-Nov 30 16 days 480 + 50 = 530 530 X 16 = 8480
Total = 16680

16680 divided by 30 days = 556

556 X .16 = 88.96

AVERAGE DAILY BALANCE METHOD EXCLUDING CURRENT PURCHASES

Nov1-Nov9 9 days 600 600 X 9 = 5400
Nov10 – Nov30 21 600 – 200 =400 400 X 21 = 8400

p0ta

Based on the information you provided, it seems that there are two credit sources with different monthly balance determination methods: the Average Daily Balance Method and the Average Daily Balance Method Excluding Current Purchases.

To determine which credit source would be recommended for Nancy, we need to compare the total interest calculated for each method.

For the Average Daily Balance Method:

1. Calculate the daily balance for each day based on the given information.
2. Sum up all the daily balances for the entire month (November).
3. Divide the total balance by the number of days in the month to get the average daily balance.
4. Multiply the average daily balance by the monthly interest rate (0.16 in this case) to get the monthly interest.

For the Average Daily Balance Method Excluding Current Purchases:

1. Calculate the daily balance for each day, excluding any current purchases.
2. Sum up all the daily balances for the entire month (November).
3. Divide the total balance by the number of days in the month to get the average daily balance.
4. Multiply the average daily balance by the monthly interest rate (0.16 in this case) to get the monthly interest.

By comparing the total interest calculated using both methods, you can determine which credit source would be more favorable for Nancy.

In the given example, the total interest calculated using the Average Daily Balance Method is $88.96, and the total interest calculated using the Average Daily Balance Method Excluding Current Purchases is not provided. Therefore, without knowing the total interest calculated using the second method, it is not possible to recommend which credit source would be better for Nancy.