Question

Cedrick's credit card was​ stolen, and he did not realize that it was stolen until he received his most recent billing statement. He contacted the credit card company immediately after he read his statement. Fraudulent charges were as​ follows: $250 for a Blueminusray ​player, $600 for a new set of​ tires, $200 cash​ withdrawal, and​ $40 in interest charges on the above items. He did not carry credit card insurance. How much is​ Cedrick's potential maximum​ liability?

A. ​$40.00

B. ​$50.00

C. ​$850.00

D. ​$1,050.00

E. ​$1,090.00

Answer 1

Cedrick's potential maximum liability = $50

Step-by-step explanation:

Given:

$250 = a Blueminusray player

$600 = new set of tires

$200 = Cash withdrawal

$40 = interest charges

Find:

Cedrick's potential maximum liability

Computation:

Cedrick's potential maximum liability = Blueminusray player - Cash withdrawal

Cedrick's potential maximum liability = $250 - $200

Cedrick's potential maximum liability = $50