3
QuizMultiple Choice

Population Growth — Quiz

Question 3 • Algebraic Reasoning

You have just graduated from college and purchased a car for 5000 dollars Your credit limit is 10 dollars comma 000 Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 8 percent What is the growth rate of your credit card balance per month (as a decimal)?

Answer
A
0 point 2
B
0 point 0 2
C
0 point 0 8
D
0 point 8

Explanation

An 8 percent monthly interest rate written as a decimal is 8 ÷ 100 = 0.08. So the credit card balance grows at a rate of 0.08 per month, which is choice C; the credit limit and original purchase amount do not change the stated rate.

AI-written and checked against the verified answer.

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