Question

Nadia's credit card has an APR of 12.18% and a grace period of 17 days, and Nadia pays her balance in full every month. If her last billing cycle ended on November 27, 2009, and she made her payment on December 13, 2009, did she owe any interest on her last statement's balance?
A.Yes, because she didn't pay within the grace period. B.No, because she didn't pay within the grace period. C.No, because she paid within the grace period. D.Yes, because she paid within the grace period.

Answer 1

No, Nadia wouldn't owe any interest on her last statement balance because she paid it in full within the grace period. A grace period is a period in which they allow someone to make a payment without being held accountable for a delay in payment making. Since Nadia paid the amount on day 17, she was within the grace period and forgiven of all interest.