Question

Caroline receives a credit card with an introductory APR of 0% for six months. After the introductory period expires, the APR is 25%. She uses the card to purchase clothes worth $125. If the balance on her card is $75, how much did she pay on her card before the introductory period expired?

$50
$75
$125
$25

Answer 1

She paid $50 on her card before the introductory period expire. Because if she spent $125 on clothes purchases and the remaining balance on her credit card is only $75, she spent $50. Being $125-$75=$50. The APR of 25% does not take into account yet since we are only talking about the introductory period.