you are a college freshman and have a credit card. you immediately purchase a television set for $1200. your credit limit is $2000. lets assume that you make no payments and purchase nothing more and there are no other fees. the monthly interest rate is 1.12% what is your initial credit card balance?
a. $0
b.$100
c. $2000
d. $1200

Question

you are a college freshman and have a credit card. you immediately purchase a television set for $1200. your credit limit is $2000. lets assume that you make no payments and purchase nothing more and there are no other fees. the monthly interest rate is 1.12% what is your initial credit card balance?
a. $0
b.$100
c. $2000
d. $1200

shane_b · Answer

Which answer makes the most sense to you?

anonymous · Answer

c...at least thats what i think

shane_b · Answer

When I read the question, I see that I charged only $1200 and paid nothing on the account.  Therefore, the balance must at least be $1200...so answers and b are incorrect.

The question doesn't say anything about how long you've kept so you can't really consider interest.  The only balance you will have without interest is $1200.

anonymous · Answer

so based on that d is the correct answer

shane_b · Answer

Yes