You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance?
could someone help me with this i dont get it

Question

You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance?
could someone help me with this i dont get it

joemarket · Answer

To answer your question directly, the initial card balance is $8,000. 

This sounds like a trick question. The other figures are meant to confuse and distract you. One great way to ace exams is to know how to cut the extraneous info.

$8000 until the end of the month and then it would be 8000*1.02=8160 and then the month after 8000*1.0^2, then 8000*1.02^3 etc etc