Schwartzman Co

question 12

Multiple Choice

Schwartzman Co., makes a credit card sale to a customer for $800. The credit card sale has a grace period of 30 days and then an interest charge of 1.5% per month is added to the balance. If the unpaid balance on the above sale is $640 at the end of the grace period, the interest charge is

• A) $6.40.
• B) $9.60.
• C) $11.00.
• D) $16.00.

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Definitions:

Contractor

An individual or company that enters into a contract to perform services or provide goods for another party in exchange for compensation.

Subcontractors

Specialized professionals or companies hired by the main contractor to perform specific tasks as part of a larger project.

Secured Interest

A legal claim or lien on assets or collateral, given to lenders as security for a loan or obligation.

Creditor

A creditor is an entity or person that lends money or extends credit to another party, known as the debtor.