You have a credit card and the average balance on that card, year after year, is

$4,000. The credit card company charges 28% annual interest on your average

balance. How much extra money would you have available each year to put into

investments if you weren't paying interest on that credit card debt?

OA. $500.

OB. $840.

OC. $1,120.

OD. $663

Question

Damarion Farmer

Social Studies

23 November, 18:38

You have a credit card and the average balance on that card, year after year, is

$4,000. The credit card company charges 28% annual interest on your average

balance. How much extra money would you have available each year to put into

investments if you weren't paying interest on that credit card debt?

OA. $500.

OB. $840.

OC. $1,120.

OD. $663

+2

Answers (1)

Know the Answer?

Babbles · Answer 1

The amount available each year if the interest is not paid on the credit card is : $1120.

Answer: Option C.

Explanation:

Credit cards are the cards which are provided to the customers with which the customers can make payments for the goods and the services which they purchase. The cards provide the clients with a certain amount of credit for a particular period of time and in place of this an interest is charged.

If the balance in your card is $4000 and the interest charged annually is around 28%, then the customer has to pay an amount of $1120 in a year according to that rate of interest.