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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