3
QuizMultiple Choice

Credit Cards — Quiz

Question 3 • Financial Algebra/Mathematics

Emilee makes a $⁢600 purchase on a credit card with a 12% annual interest rate and a 25 -day grace period. If she pays off the purchase 12 months after the grace period, what is the total cost of her purchase including interest? Formula: total cost=purchase amount+(purchase amount⋅interest rate)

Answer
A
720 dollars
B
600 dollars
C
612 dollars
D
672 dollars

Explanation

The purchase amount is $600, and the annual interest rate is 12%. For 12 months of interest, calculate $600 × 0.12 = $72. Add the interest to the purchase price: $600 + $72 = $672, so the total cost is $672.

AI-written and checked against the verified answer.

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