Question

You are a college freshman and have a credit card. You immediately purchase a television set for $1200. Your credit limit is $2000. Let’s 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?

Answer 1

a.
$0
c.
$2000
b.
$100
d.
$1200

Answer 2

whats your thought process in this?

Answer 3

what you mean

Answer 4

well, you have a question, it requires you to have some thoughts about what a solution might be .. so, what effort have you put into this? what have you tried to work out?

Answer 5

i thought it might be d were you just subtract i just need to know if im right or wrong and hw to write if i am doin it wrong

Answer 6

i have like four problems like this one

Answer 7

my thoughts, and im not sure about the correctness of it ... is that an intial balance refers to how much is on the card to start with.

If i give you 2000 to go on a shopping spree with, then regardless of how much you spend, you still started with 2000 initially

Answer 8

but it talking bout the monthly interest rate that's were im throwed off at

Answer 9

but if the initial balance refers to how much you owe to start with ... then my thoughts say 0, but im torn since i do not know what "initial balance" defines in this case

Answer 10

finance questions like to throw in alot of useless information and expect you to sort out the stuff thats important

Answer 11

oh okay thank u

Answer 12

http://www.investopedia.com/terms/c/credit-card-balance.asp

from this, it would indicate that the inital balance is 0, then you start to owe stuff as you use it

Answer 13

so it would be 0

Answer 14

The answer is D. $1,200