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?

Answer 1

ike 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.

Answer 2

like a loan