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.)

$3,000 balance, 21% rate, $150 payment, adjusted balance method

$49.88

49.88 To calculate the monthly finance charge using the adjusted balance method, you would need to follow these steps:

Step 1: Determine the average daily balance
To calculate the average daily balance, you need to determine the balance for each day in the billing cycle and then divide it by the number of days in the billing cycle.

In this case, the balance is $3,000 and the billing cycle is 30 days. However, since it takes 10 days for a payment to be received and recorded, we need to subtract those 10 days from the billing cycle. Therefore, the number of days we consider for the average daily balance is 30 - 10 = 20 days.

Average daily balance = (balance * number of days) / billing cycle
Average daily balance = (3000 * 20) / 30
Average daily balance = 2000

Step 2: Determine the monthly interest rate
The annual interest rate is given as 21%. To calculate the monthly interest rate, you divide the annual interest rate by 12.

Monthly interest rate = 21% / 12
Monthly interest rate = 0.0175

Step 3: Calculate the finance charge
To calculate the finance charge, you multiply the average daily balance by the monthly interest rate.

Finance charge = Average daily balance * Monthly interest rate
Finance charge = 2000 * 0.0175
Finance charge = $35

Therefore, the monthly finance charge for this credit card transaction, using the adjusted balance method, is $35.