Question

Arthur has an april credit card balance of $325.24. his repayment date is the 25th of every month, with a grace period of 5 days. if his payment is late, the credit card company charges him a $25 late fee. arthur wants to repay the full amount to have a zero balance. how much should arthur pay if his online payment is processed on may 1?

a. $325.24, the april balance
b. $25, the april late fee
c. $350.24, the april balance plus the late fee
d. $300.24, the april balance minus the late fee

Answer 1

c. $350.24, the april balance plus the late fee

Explanation:

You want to know the required total payment when the balance being repaid is $325.24 and a late fee of $25 is charged.

Total owed

Arthur must pay both the balance due and the late fee. The total amount he must pay is ...

balance + late fee = $325.24 +25.00 = $350.24