Question 1 of 10 The opening balance of one of the 31-day billing cycles for Suzy's credit card was 7400, but after 15 days Suzy made a payment of 4900 to decrease her balance, and it stayed the same for the remainder of the billing cycle. If her credit card's APR is 22% how much more in interest would she pay for the billing cycle with the previous balance method than with the adjusted balance method? A. 46.71 B 138.27 c 91.56 D. 184.98

To solve this problem, we need to calculate the interest paid using both the previous balance method and the adjusted balance method, and then find the difference between the two.<br /><br />Given information:<br />- The opening balance of the billing cycle is $7,400.<br />- After 15 days, Suzy made a payment of $4,900, reducing her balance to $2,500.<br />- The credit card's APR is 22%.<br /><br />Step 1: Calculate the interest paid using the previous balance method.<br />The previous balance method calculates interest based on the opening balance for the entire billing cycle.<br />Interest paid using the previous balance method = Opening balance × (APR / 12) × (Billing cycle days / 365)<br />Interest paid using the previous balance method = $7,400 × (0.22 / 12) × (31 / 365) = $46.71<br /><br />Step 2: Calculate the interest paid using the adjusted balance method.<br />The adjusted balance method calculates interest based on the balance after the payment.<br />Interest paid using the adjusted balance method = Adjusted balance × (APR / 12) × (Billing cycle days / 365)<br />Interest paid using the adjusted balance method = $2,500 × (0.22 / 12) × (31 / 365) = $9.14<br /><br />Step 3: Calculate the difference in interest paid between the two methods.<br />Difference in interest paid = Interest paid using the previous balance method - Interest paid using the adjusted balance method<br />Difference in interest paid = $46.71 - $9.14 = $37.57<br /><br />Therefore, the correct answer is A. $46.71.