People who pay for their credit card purchases at the end of the month to avoid interest fees are enjoying the benefits of:

Question

Quizplus · Accepted Answer

Open credit refers to a type of credit where the borrower can pay off their full balance at the end of each billing cycle and avoid paying interest fees. This is the situation described in the question, where the person pays for their credit card purchases at the end of the month to avoid interest fees. Simple interest refers to interest calculated only on the principal balance, while discount interest is a type of reduced interest rate offered as an incentive for early payment. Compound interest refers to interest calculated on the principal balance plus any accumulated interest. None of these options apply to the given scenario.

People Who Pay for Their Credit Card Purchases at the End