Question

You have a balance of $4,500 on your credit card. the interest rate is 12% (1% per month). the late payment fee is $40. you miss a payment. what are your fees plus interest for the month?
a. $40
b. $45
c. $65
d. $85

Answer 1

Answer:

Option (d) $85

Explanation:

Data provided in the question:

Balance on the credit card = $4,500

Annual Interest rate = 12%

interest rate per month = 1%

Late payment fees = $40

Now,

Total interest charged on the balance for the month = 1% of $4,500

= 0.01 × $4,500

= $45

Therefore,

The total fees plus interest for the month

= $45 + $40

= $85

Hence,

Option (d) $85