A cash advance Group of answer choices Involves a grace perod on most cards Is a loan billed to your bank account. On some cards has a lower interest rate than on purchases Requires you to pay interest every day until you repay the cash advance Is less expensive than charging a purchase to your credit card

Question

Frances Garrison

Business

20 January, 15:57

A cash advance Group of answer choices Involves a grace perod on most cards Is a loan billed to your bank account. On some cards has a lower interest rate than on purchases Requires you to pay interest every day until you repay the cash advance Is less expensive than charging a purchase to your credit card

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Answers (1)

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Imani Decker · Answer 1

The correct answer is letter "C": Requires you to pay interest every day until you repay the cash advance.

Explanation:

A cash advance is a form of loan an individual must pay in the short-run. In some cases, they are debited directly from the debtors' paycheck. The characteristic of this loan is carrying a relatively high-interest rate. If the debtor defaults, the debt amount increases exponentially. As the repayment is expected soon, the interest rate is compounded, meaning it is calculated by day until the total debt has been paid off.