As of November 14, Ben has an outstanding credit card balance of $1,100 from purchases made over the past month. The new billing period begins on November 15
Assume Ben's outstanding balance for the first 15 days of this new billing period (Nov. 15-29) is $1,100. Then on November 29, the financial institution receives a payment of $600 from Ben, reducing his balance to $500. This is the balance for the remaining 15 days.
Using the adjusted balance method and a monthly interest rate of 2.5%, Ben's finance charge would be
A) $15.00.
B) $12.50.
C) $27.50.
D) $20.00.
Answer: B
Explanation: B) $500 × .025 = $12.50
Business
You might also like to view...
A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________
A) profitability B) target market feasibility C) opportunity D) continuous improvement E) quality products
Business
What is the purpose of benchmarking?
What will be an ideal response?
Business