You Have a Credit Card on Which Your Balance for the First

question 52

Multiple Choice

You have a credit card on which your balance for the first day after the grace period is $400. On the tenth day of the billing period you took out a cash advance of $500. Your card charges 19 percent on balances outstanding and begins calculating interest on cash advances immediately. What is your total interest due on the thirtieth day of the billing period (when the next statement is produced) ?

• A)$10.85
• B)$10.24
• C)$14.05
• D)$11.46

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Definitions:

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