Question

Nadia's credit card has an APR of 12.18% and a grace period of 17 days, and Nadia pays her balance in full every month. If her last billing cycle ended on November 27, 2009, and she made her payment on December 13, 2009, did she owe any interest on her last statement's balance?

Answer 1

No, because she paid within the grace period

Answer 2

She owed no interest on her last statement's balance.

Explanation:

Nadia's last billing cycle ended on November 27, 2009 and she made her payment on December 13, 2009.

So, the number of days between November 27 and December 13 is 16.

The grace period of the credit card is 17 days. It means, if she pays the statement's balance within 17 days after the end day of her billing cycle, then no interest will be charged.

Thus, as she paid the balance in 16 days, that's why she owed no interest on her last statement's balance.