To mention: The amount charged on credit card.
Explanation of Solution
Given Information:
The charges on credit card were $1000,
Interest rate is 15% (not variable)
Fee paid monthly of $50.
At the time of paying debt, the extra amount charged will be the interest on the amount borrowed which is not paid on a timely basis. For instance, the credit charges were $1,000, which should be paid within 2 months. If the amount is not paid within the time frame, then additional interest can be charged on the credit amount borrowed. The additional amount of $140 will be the interest charges on the amount of $1,000.
This amount is required to be paid off if person wants to clear its debt.
Chapter 4 Solutions
Economics Today and Tomorrow, Student Edition
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