Solve the Problem

question 49

Multiple Choice

Solve the problem. Assume that the minimum payment on a credit card is the greater of $27 or 3% of the unpaid balance.
-If the annual interest rate is 15.99%, find the difference between the minimum payment and the interest owed on an unpaid balance of $748.44 that is 1 month overdue.

• A) $12.54
• B) $13.10
• C) $17.03
• D) $14.03

---

Definitions:

Negotiable

Capable of being transferred from one party to another in exchange for something of value, typically used in the context of financial instruments.

Acceleration Clause

A provision in a loan agreement that allows the lender to demand immediate repayment of the balance if certain conditions are not met.

Negotiable Instrument

A financial document, such as a check or promissory note, that contains an unconditional promise or order to pay a specified amount of money, easily transferable from one party to another.

Acknowledges The Debt

The act of a debtor formally admitting the existence or validity of a debt owed to a creditor.