Rachel Johnson Went to the ATM to Draw $300 Cash

question 31

Multiple Choice

Rachel Johnson went to the ATM to draw $300 cash with her debit card.She inadvertently pulled out her credit card instead,not realizing the expenses for cash advances.If her credit card company charges a cash advance fee of 3% and interest at 24% APR,what are the total fees she will pay for her mistake?

• A) $3
• B) $6
• C) $9
• D) $15
• E) $24

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Definitions:

Selling Price

The amount a good or service is sold for in the market.

Assessed Value

The dollar value assigned to a property for purposes of measuring applicable taxes, often determined by a public tax assessor.

Payoff

The act of completely repaying a loan, including the principal amount and any accrued interest, thereby fulfilling the borrower's obligations.

Sale

The act of selling goods or services in exchange for money or other compensation, constituting a fundamental business activity.