Fred Has a Credit Card Which Uses the Average Daily

question 77

Multiple Choice

Fred has a credit card which uses the average daily balance method,has a 30-day billing period,a 21-day grace period and charges 21 percent annual interest calculated (but not compounded) daily.His average daily balance for the billing period was $7900,and he could not pay it off until received his pay cheque eight days after the statement due date.How much interest does he owe?

• A)$268.17
• B)$172.72
• C)$136.36
• D)$36.36

Understand the relationship between traumatic experiences and the development of certain psychological disorders.

Understand how automatic stabilizers like unemployment insurance and welfare programs work during recessions.

Comprehend the mechanisms of fiscal and monetary policies in stabilizing the economy.

Grasp the concept and calculation of the multiplier and its impact on the economy.

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product.

Cost Data

Details about the costs associated with creating a product or service, such as the expenses for materials, workforce, and indirect costs.

Purely Competitive Producer

A producer in a market structure characterized by many small firms, homogeneous products, and free entry and exit, leading to zero economic profit in the long run.

Economic Profit

The differential amount left after subtracting all types of costs, both seen and unseen, from the total income.