You Have a Credit Card on Which Your Beginning Balance

question 46

Essay

You have a credit card on which your beginning balance for the month was $400.On the 10th of the month you took out a cash advance of $500.During the month you made purchases of $250.Assuming that the interest rate on purchases is 15 percent (1.25 percent per month),cash advances is 18 percent (1.5 percent per month),and there is a 1 percent fee on all cash advances,what would you have to pay to pay off your account if your due date is the 30th of the month.
(a)$1,165
(b)$1,222.50
(c)$1,305
(d)$1,342.50

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, all of whom are selling identical products, with no single buyer or seller able to influence the market price.

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The total quantity of goods that producers are willing and able to supply at different prices in a market during a short-term period.

Perfectly Competitive Market

A market scenario where conditions of perfect competition are met, including many buyers and sellers, freedom of entry and exit, and products that are perfect substitutes.

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