Question

If the bill is paid in full each month, there is an interest charge of what amount?

A. $0
B. $5
C. $10
D. $15
E. None of the above

Answer 1

When the bill is paid in full each month, there is no interest charge, resulting in an interest charge of $0.

Step-by-step explanation:

If the bill is paid in full each month, the interest charge is $0. This is because interest is only applied to the remaining balance that is not paid. Since the balance is paid in full, there's no remaining balance on which the interest can be charged. Considering a credit card company that charges a late fee and daily fees for unpaid balances, those charges apply when payments are not made in full or when they are late. Therefore, if payments are timely and the bill is completely paid off each month, no interest or additional fees accrue.