Question

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?

Answer 1

Susan would not incur any interest if she paid off her credit card balance within the one-month grace period provided by most credit cards.

Step-by-step explanation:

If Susan had no previous balance on her credit card, and she paid off the balance within one month, she would not have to pay any interest. This is because most credit cards offer a grace period in which you can repay the borrowed amount without incurring interest. It's crucial to understand that carrying a balance from month to month results in interest charges, which are calculated by multiplying your balance by the interest rate. Therefore, by paying off the entire balance before the due date, Susan avoids these additional costs.

Answer 2

Based on the given scenario above, since Susan had no previous balance on her credit card and that she was able to pay off the balance within 1 month, she will not be paying any interest. The interest in the credit card only applies to the amount that has been pass the due date or are not paid in full. Hope this answer helps.