Due to Poor Spending Habits, Ricky Has Accumulated $5,000 in Credit

question 146

Multiple Choice

Due to poor spending habits, Ricky has accumulated $5,000 in credit card debt. He has missed several payments and now the annual interest rate on the card is 16.75 percent! If he pays $200 per month on the card, in total, how much interest expense does Ricky pay to the credit card company?

• A) $847.50
• B) $1,192.00
• C) $2,118.75
• D) $6,192.00

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Definitions:

Partnership

An association of two or more persons to carry on as co-owners a business for profit.

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An attorney who operates their law practice individually, rather than as part of a law firm or partnership.

Private Practitioner

A professional, often in law or healthcare, operating independently rather than as an employee of an organization.

Limited Practitioner

A professional who is authorized to provide certain legal services but does not have the full qualifications or rights of an attorney at law.