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
Article continues below advertisement
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.
Related Articles
Quiz Questions On Insurance and Risk Management - 3
367 days ago
Quiz Questions on Credit Management and Awareness
368 days ago
Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.