Mike and Jim are on vacation. They charge some expenses on their credit cards and make payments on the cards after the vacation. Jim also takes a cash advance on his card to use at places that do not accept credit cards. They each spend $450 on $1,000 credit cards with zero initial balance. Both cards have the same terms. Which of the following is true?

Mike will pay interest charges even if he pays his total balance before the due date.
Jim will incur an annual membership fee because he did have a cash adavance
Jim will pay interest charges even if he pays his total balance before the du

Question

Mike and Jim are on vacation. They charge some expenses on their credit cards and make payments on the cards after the vacation. Jim also takes a cash advance on his card to use at places that do not accept credit cards. They each spend $450 on $1,000 credit cards with zero initial balance. Both cards have the same terms. Which of the following is true?

Mike will pay interest charges even if he pays his total balance before the due date.
Jim will incur an annual membership fee because he did have a cash adavance
Jim will pay interest charges even if he pays his total balance before the du

anonymous · Answer

Jim will pay interest charges even if he pays his total balance before the due date.
Mike will incur an annual membership fee because he did not have a cash advance.

anonymous · Answer

I'm going with a

astrophysics · Answer

Ok so what is a cash advance?

astrophysics · Answer

It requires a fee right?

anonymous · Answer

I ont understand

astrophysics · Answer

You should try to understand the question, what does a cash advance mean?

anonymous · Answer

when thye give u money before u get payed

astrophysics · Answer

No, that's different. This is about credit cards, it allows you to withdraw cash and it charges you extra if you do so