ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Karl used his credit card to buy a90-inch HD flat-screen TV for $2, 600. The credit card company charges 28%compound interest per year. If Karl made no payments for 2 years, how muchwould he owe the credit card company?
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$5, 069.84
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$4, 772.18
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$4, 259.84
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$4056.00
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Explanation:
Detailed explanation-1: -Cash advance fee: This is the fee charged every time you withdraw cash using your Credit Card. Typically, it ranges from 2.5% to 3% of the transaction amount, subject to a minimum amount of Rs 250 to Rs 500 and is reflected in the billing statement.
Detailed explanation-2: -Pay off your balance in full each month before your grace period ends to avoid interest charges.
There is 1 question to complete.