If creditors add finance charges after subtracting payments made during the billing period, this is called the:


A. APR method.


B. average daily balance method.


C. previous balance method.


D. adjusted balance method.
its not A or D someone help me

B. is my choice.

To find the correct answer, let's break down each option and understand what they mean in relation to creditor finance charges:

A. APR method: The Annual Percentage Rate (APR) is the yearly interest rate on a loan or credit card balance. However, the APR method does not directly address how finance charges are calculated based on subtracting payments made during the billing period, so it is not the correct answer.

B. Average daily balance method: This method calculates finance charges based on the average balance of the account over the billing period. While it considers the average balance, it doesn't specifically address how payments made during the billing period are subtracted before calculating finance charges.

C. Previous balance method: This method calculates finance charges based on the balance of the account at the beginning of the billing period. It does not factor in payments made during the billing period, so it is not the correct answer.

D. Adjusted balance method: This method calculates finance charges based on the balance of the account after subtracting any payments made during the billing period. Since this option specifically mentions subtracting payments made during the billing period, the adjusted balance method is the most likely answer.

Therefore, the correct answer to the question is D. adjusted balance method.