Question

Choose the fragment that best completes the following sentence. Interest charges will not be applied to a credit card when-

A.) the balance is payed off during the grace period
B.) the minimum payment is made during the grace period
C.) the minimum payment is made before the due date
D.) the balance is payed off during the next billing cycle

Answer 1

A.) the balance is payed off during the grace period

Explanation:

Paying only the minimum payment would cause the remainder of the balance to draw interest charges, whether paid during the grace period or before the due date.

Paying off the balance during the next billing cycle will still result in interest charges for the current billing cycle.

Paying off the balance during the grace period, however, will not result in interest charges.

Answer 2

The terms and conditions are in the agreement you have with the credit card company. In general, ...

... interest charges will not be applied to a credit card when ...

... A.) the balance is paid off during the grace period.