A Department Store Credit Card Advertises No Payments for 2

question 81

Multiple Choice

A department store credit card advertises no payments for 2 years on purchases. What they do not advertise is that interest is compounded continuously for those two years at an annual rate of 19.7%. If you make a purchase of $550 and make no payments for 2 years, how much would you owe at the End of those 2 years?

• A) $216.70
• B) $815.60
• C) $17,127.60
• D) $766.70

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Definitions:

Traditional Societies

Societies that adhere to long-established customs, norms, and roles, often with a resistance to modern changes.

Bride Price

The required payment by the groom’s family to the bride’s family.

Groom's Family

The family of the male partner in a marriage, which can play a significant role in wedding preparations, traditions, and ongoing family relationships.

Bride's Family

The family of the female partner in a marriage or wedding ceremony.