Respuesta :
The Annual Percentage Rate (APR) will tell you how much credit card interest there will be if you only pay the minimum balance each month. The APR is a percentage rate that adds interest to your cards each month though the APR is for a 12 month period. To find the monthly amount of interest that will be added to your statement if not paid in full, you can divide the interest rate by 12, to determine the monthly added interest.
C is the correct option.
The annual percentage rate tells how much the credit card interest will be if we only pay the minimum balance each month.
Further explanation:
Annual percentage rate:
Annual percentage rate (APR) is an annual rate charged for borrowed amounts. And in the case of credit card interest, the annual percentage rate tells the interest of the credit card. The rate of interest is charged monthly for a year.
Justification for the correct and incorrect answer:
A.Late fee: This option is incorrect.
Late fee is an overdue fine or the past amount fine when the creditor has not paid the borrowed money from the company or the organization. Its use is most common in businesses.
B. Annual membership fee: This option is incorrect.
An annual membership fee is an annual fee that is charged from the credit card holders and the fee is charged annually. So, it does not tell us about the credit card interest.
C. Annual percentage rate: This option is correct.
An annual percentage rate tells the interest of a credit card and at what rate the interest is being charged.
D.Balance transfer fee: This option is incorrect.
The balance transfer fee is a fee charged when one credit card debt is transferred to another credit card. It is mostly around the rate 3% to 5% fee charged for the transfer of the debt amount of the one credit card to another credit card.
Thus, the annual percentage rate tells how much the credit card interest will be if we only pay the minimum balance each month.
Learn more:
1. Minimum payment of credit card
https://brainly.com/question/6453895
2. Charging fee in case of credit card
https://brainly.com/question/2668305
3. Consequences of non-payment of monthly credit card payment
https://brainly.com/question/3211811
Answer details:
Grade: High School
Subject: Business studies
Chapter: Banking
Keywords: which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month, late fee, annual membership fee, annual percentage rate, balance transfer fee.
