Question

Shannon received a credit card offer in the mail. She applied for the credit card and received a card with a limit of $500. Shannon's introductory APR was 0% for the first nine months. After that, her APR for purchases will be 19.99%. Shannon immediately makes purchases on her credit card worth $300 and each month makes minimum payments of $15. What will the balance be on Shannon's card at the time the APR for purchases starts applying to her balance? Select the best answer from the choices provided. $365 $135 $335 $165

Answer 1

Shannon is not charged 0% interest for the first nine months.

If she's paying $15 per month for nine months, then by the end of ninth months, she'd have 500 - (15 × 9) = 500 - 135 = $365 left to pay

Answer: First option