Michelle's credit card has a 1% introductory APR for 12 months and after that a 19.9% APR for purchases. Michelle makes purchases of $150 and plans to pay off her total balance before the grace period ends. Her card has a late fee of $35 and an annual membership fee of $0. How much will Michelle pay to have a $0 balance on her credit card? Select the best answer from the choices provided. $151.50 $150 $148.50 $115

Question

Andrew Long

Mathematics

28 June, 12:43

Michelle's credit card has a 1% introductory APR for 12 months and after that a 19.9% APR for purchases. Michelle makes purchases of $150 and plans to pay off her total balance before the grace period ends. Her card has a late fee of $35 and an annual membership fee of $0. How much will Michelle pay to have a $0 balance on her credit card? Select the best answer from the choices provided. $151.50 $150 $148.50 $115

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Answers (1)

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Emerson Shelton · Answer 1

There is a lot of extraneous (unnecessary) information here designed to trip you up.

1% of $150 is $1,50. If we add that to her purchase, we get $151.50

Provided she pays during the grace period, she should only have to pay $151.50