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?

Select the best answer from the choices provided.
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 advance.
Jim will pay interest ch

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?


Select the best answer from the choices provided.
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 advance.
Jim will pay interest ch

anonymous · Answer

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 advance.
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.