The method that Roger's credit card company use is the average daily balance method.
(1) If Roger's company uses the previous balance method:
The total balance at the end of the month is:
P= 265.40+43.33+37.71= $346.44
The interest levied on this balance = 346.44*19.40/100 *1/12 = $5.60
(2)If Roger's company uses the adjusted balance method:
The total balance at the end of the month is:
P= 265.40+43.33+37.71-90= 256.44
The interest levied on this balance = 256.44*19.40/100 * 1/12 = $4.146
The average daily balance is a common accounting method that calculates interest charges by considering the balance invested or owed at the end of each day of the billing period, rather than the balance invested or owed at the end of the week, month, or year.
(3)if Roger's company uses the Daily balance method:
Balance up to 6/1 to 6/6 = 265.40 for 5 days
Balance up to 6/6 to 6/16 = 265.40-90 = 175.40 for 10 days
Balance up to 6/16 to 6/22 = 175.40+43.33. = 218.73 for 6 days
Balance upto 6/22 to 6/30 = 218.73+37.71 = 256.44 for 8 days
So average daily balance :
(265.40*5+175.40*10+218.73*6+ 256.44*8)/30= 214.83
The interest levied on this balance = 214.83*19.40/100 * 1/12= $3.47
Thus, the method that Roger's credit card company use is the average daily balance method.
To get more about the average daily balance method refer to the link,
https://brainly.com/question/9982329
