Due to Poor Spending Habits, Ricky Has Accumulated $10,000 in Credit

question 126

Multiple Choice

Due to poor spending habits, Ricky has accumulated $10,000 in credit card debt. He has missed several payments and now the annual interest rate on the card is 18.95 percent! If he pays $175 per month on the card, in total, how much interest expense does Ricky pay to the credit card company?

• A) $15,987.50
• B) $17,008.52
• C) $12,905.13
• D) $8,714.62

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Definitions:

Mental Exhaustion

A state of extreme fatigue or depletion of mental resources, leading to reduced cognitive performance.

Constructive Stress

A form of stress that is perceived as beneficial, motivating individuals to perform better and achieve their goals.

Stimulate Creativity

The process of encouraging innovative or creative thinking and problem-solving.

Set Up To Fail

A situation in which conditions are deliberately made so challenging or expectations are set so high that failure is almost guaranteed.