Question

You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance?

Answer 1

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 2

Answer:

c. $8000

Step-by-step explanation: