Bradley Currently Has a Visa Card from His Bank with the Following

question 50

Multiple Choice

Bradley currently has a Visa card from his bank with the following terms: 21 percent on purchases, 25 percent on cash advances with a 3 percent cash-advance fee on the amount, and a default or penalty rate of 33 percent. His current statement shows a balance of $9,000. Lately, he has been having a hard time paying more than the minimum payment of 3 percent of his balance.
-What is the APY on Bradley's default,or penalty,rate?

• A) 33 percent
• B) 33.50 percent
• C) 38.48 percent
• D) 42.96 percent

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Definitions:

Fixed Expenses

Costs that do not change in total regardless of changes in the volume of production or sales.

Operating Results

A summary of a company's financial performance over a specified period, focusing on revenue, expenses, and net income.

Unit Variable Cost

The cost associated with producing one additional unit of product, which can include materials, labor, and other costs that vary directly with production volume.

Marketing Manager

A professional responsible for planning, directing, and orchestrating a company's marketing policies and campaigns to increase brand awareness and sales.