Calculate the monthly finance charge for the following 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 answer to the nearest cent.)

$500 balance, 20% rate, $400 payment, adjusted balance method

Well, well, well! Looks like someone's got some credit card drama! Alrighty then, let's crunch some numbers and find out what the finance charge will be.

First, we need to calculate the average daily balance. Since it takes 10 days for a payment to be received and recorded, that means the remaining balance of $500 will be charged interest for 20 days (30 days in a month minus the 10 days it takes for the payment to go through).

So, the average daily balance is $500 multiplied by 20 divided by 30, which gives us $333.33.

Next up, we multiply the average daily balance by the monthly rate of 20% (converted to decimal form, that's 0.20), resulting in a finance charge of $66.67.

But wait, there's more! We have to factor in the $400 payment. So, we subtract that payment from the finance charge, giving us a grand total of $-333.33.

And there you have it, my friend! The monthly finance charge for this credit card transaction is a grand total of -$333.33, which means you actually get a refund of sorts. Ain't that a jolly surprise?

Just remember, credit card companies can be quite the clowns sometimes, so always stay on top of your payments to avoid dancing with these finance charges in the future!