Question

You got a new credit card and spent $200 on the card last month. You forgot to make the payment on time and were assessed a $40 late fee. What is the late fee as a percentage of your balance?
a) 20%
b) 25%
c) 40%
d) 50%

Answer 1

Amount of money spent on the new credit card = $200
Amount of late payment charged = $40
Let us assume the percentage of late fee charged = x%
Then
200 * (x/100) = 40
2x = 40
x = 40/2
   = 20 percent
The correct option among all the options that are given in the question is the first option or option "a". I hope it helps you.