Jake Owes $3,990 on a Credit Card with an APR

question 96

Multiple Choice

Jake owes $3,990 on a credit card with an APR of 13.9 percent.How much more will it cost him to pay off this balance if he makes monthly payments of $50 rather than $60? Assume he does not charge any further purchases.

• A)$2,409
• B)$2,811
• C)$1,648
• D)$1,018
• E)$3,545

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Definitions:

Egocentrism

A cognitive bias where individuals perceive the world primarily from their own perspective, often failing to understand or acknowledge others' viewpoints.

Middle Childhood

The developmental stage from approximately 6 to 12 years of age, encompassing early school years and characterized by significant growth in cognitive, emotional, and social domains.

Universal Sequence

A consistent order or pattern that events, stages, or processes follow across different contexts or populations.

Cultural Variation

Differences in norms, values, beliefs, and practices among various cultures.