You are a college freshman and have a credit card. you immediately purchase a television set for $1200. your credit limit is $20
00. lets assume that you make no payments and purchase nothing more and there are no other fees. the monthly interest rate is 1.12% what is your initial credit card balance? a. $0
b.$100
c. $2000
d. $1200
A credit card balance is the amount of money a person owes to his credit card company. When you purchase something using your credit card When you use your c increases and when you make any payments for your purchases, the balance decreases. If any balance is left at a month end, it is carried forward to the next month's bill.
So, in the given scenario, the initial credit card balance is $1200.
