A retailer offers an option credit account to its customers;interest is charged at 15 percent per year.If a consumer buys $400 in merchandise on January 1 and receives the bill January 15,how much must the consumer remit to pay the account in full?
A)$400
B)$406
C)$403
D)$409

Question

Quizplus · Accepted Answer

The consumer must remit the original purchase amount of $400 to pay the account in full by the due date, January 15, as interest is charged annually and not within the 15-day period.

A Retailer Offers an Option Credit Account to Its Customers;interest