You have a credit card on which your beginning balance for the month was $400.On the 10th of the month you took out a cash advance of $500.During the month you made purchases of $250.Assuming that the interest rate on purchases is 15% (1.25% per month),the rate on cash advances is 18% (1.5% per month),and there is a 1% fee on all cash advances,what would you have to pay to pay off your account if your due date is the 30th of the month.

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The correct answer is A. The total amount owed is $1,165.00. This is calculated as follows:Beginning balance: $400.00Cash advance: $500.00Purchases: $250.00Total: $1,150.00Interest on purchases: $1.25 per month x 20 days = $25.00Interest on cash advance: $1.50 per month x 20 days = $30.00Cash advance fee: $5.00Total amount owed: $1,150.00 + $25.00 + $30.00 + $5.00 = $1,165.00

You Have a Credit Card on Which Your Beginning Balance