Question

You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance? a. $19,000 c. $8000 b. $3000 d. $11,000

Answer 1

assume the graduate put the purchase on his card.thenInitial balance = $8000 on the first statement (+fees and interest charges, if any)That means he owes the card issuer $8000.Credit balance is what the issuer owes the card holder, which is zero
option "c. $8000" is your answer