Devon Forgets to Pay His Credit Card Bill for Three Months. Which of the Following Statements is True?
If Devon forgets to pay his credit card bill for three months, his A.P.R. (interest rate) will increase to 30.24% until he clears the owed amount.
by Sai V
Updated Oct 25, 2023
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Devon Forgets to Pay His Credit Card Bill for Three Months. Which of the Following Statements is True?
A. A Late Payment fee will not be charged to his account.
B. A Balance Transfer fee will be charged to his account.
C. His A.P.R. (interest rate) will rise to 30.24% until he pays back the amount he owes.
D. His A.P.R. (interest rate) will rise to 30.24% and stay there until he makes six consecutive minimum payments.
The correct answer is C. His A.P.R. (interest rate) will rise to 30.24% until he pays back the amount he owes.
When Devon forgets to pay his credit card bill for three months, he will incur a late payment fee, typically added to his outstanding balance. Additionally, his A.P.R. (annual percentage rate), representing the interest rate on his unpaid balance, will increase to 30.24% until he settles the owed amount. This means his interest rate will remain elevated until he clears his debt, emphasizing the importance of timely payments to avoid higher interest costs.
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