Solve the Problem

question 8

Multiple Choice

Solve the problem. Assume no new purchases are made with the credit card.
-The annual interest rate on a credit card is 20.99%. If a payment of $100.00 is made each month, how long will it take to pay off an unpaid balance of $1546.15?

• A) 19 months
• B) 18 months
• C) 13 months
• D) 21 months

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Expertise

Refers to the high level of knowledge or skill in a particular field or domain, acquired through training, experience, or study.

Shadow Organization

An informal organization within a business that is not officially recognized but significantly influences its operations.

Superior-Subordinate Relationships

The hierarchical interactions and dynamics between managers and their direct reports in an organizational structure.