Question

If you make only the minimum payment on your credit card by the due date

every month, what do you have to pay?
A. Interest on the unpaid balance
B. Interest on the original balance
C. A balance transfer fee
D. A late payment fee

Answer 1

If you make only the minimum payment on your credit card by the due date every month, you have to pay interest on the unpaid balance.

Step-by-step explanation:

The minimum payment on a credit card consists of the interest on the unpaid balance and a portion of the principal amount. This means that if you only make the minimum payment each month, you will have to pay interest on the remaining balance, which is the unpaid amount. For example, if you have a balance of $1000 and the interest rate is 15% per year, your minimum payment may be $25, with a portion going towards the interest and the rest towards reducing the principal.