You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no paymen ts and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance?
2 answers:
Assume the graduate put the purchase on his card. then Initial balance = $8000 on the first statement (+fees and interest charges, if any) That means he owes the card issuer $8000. Credit balance is what the issuer owes the card holder, which is zero.
Answer:
c. $8000
Step-by-step explanation:
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