calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. ( round your answers to the nearest cent). $ 400 balance, 15%, $ 50 payment. A) previous balance method. B) adjusted method. C) average method

To calculate the monthly finance charge for the credit card transaction using different methods, we'll need to understand each method. Let's go step by step:

A) Previous Balance Method:
1. Determine the previous balance: In this case, the previous balance is $400.
2. Calculate the finance charge: Multiply the previous balance by the monthly interest rate. The monthly interest rate is calculated by dividing the annual interest rate by 12 (since there are 12 months in a year), and then converting it to a decimal.
- Annual interest rate: 15%
- Monthly interest rate: 15% / 12 = 0.0125
- Finance charge: $400 * 0.0125

B) Adjusted Balance Method:
1. Determine the adjusted balance: Subtract any payments or credits received within the billing cycle from the previous balance.
- Previous balance: $400
- Payment: $50
- Adjusted balance: $400 - $50
2. Calculate the finance charge: Multiply the adjusted balance by the monthly interest rate.
- Monthly interest rate: Same as in the previous method.
- Finance charge: Adjusted balance * 0.0125

C) Average Daily Balance Method:
1. Determine the average daily balance: Add up the balances at the end of each day in the billing cycle and divide by the number of days in the billing cycle.
- Previous balance: $400
- Payment posting time: 10 days
- Day of the month: 30 days
- Average daily balance: [(Previous balance * (Day of the month - Payment posting time)) + (0 * Payment posting time)] / Day of the month
2. Calculate the finance charge: Multiply the average daily balance by the monthly interest rate.
- Monthly interest rate: Same as in the previous methods.
- Finance charge: Average daily balance * 0.0125

Once you perform the calculations as explained above, you will have the monthly finance charge for each method, rounded to the nearest cent.