Answered

  1. Select the most likely consequence of making credit card payments late.
AFees and paying the introductory interest rate on the balance
BPaying higher interest rates
CFees and paying the default interest rate on the balance
DNone of these answers are correct

  1. Zach is an authorized user on his parents credit card. What may happen if Zach doesn't use the card in a responsible way?
AZach's parents credit may be damaged
BZach's credit may be damaged
CNone of these answers are correct
DZach and Zach's parents credit may be damaged

3.. If interest rates rise, what will happen to the prices of bonds?

ANo change
BDecrease
CIncrease
DInterest rates and bond prices are not related

  1. If the typical balance on Lucy's credit card is $500 and the interest rate on her credit card is 16%, how much in interest would you expect Lucy to be charged in a typical month?
AAbout $51.74
BAbout $80.86
CAbout $6.67
DAbout $16.00

Verified Answer :

antonsandiego
  1. Guess that the only correct consequence of making credit card payments late is: fees and paying the default interest rate on the balance. There's a non-fee period which is defined by a bank.

    2. The most obvious option is:     Zach and Zach's parents credit may be damaged. He can forget to make the credit payments in time and the bank can make e decision to less the credit amount.

    3. As far as I remember, i    f interest rates rise, the prices of bonds will decrease. It's the cost of borrowing, so that's why I chose that option.

    4. I'd choose this one.     C. About $6.67. First let's discover your daily periodic rate. We need to do this: 16/365 this will be approximately 0.04%.
    And now we can count monthly charge. 5000.000430 = 6 (approximately)

1. The correct option is (C).

2. The correct option is (A).

3. The correct option is (B).

4. The correct option is (C).


Further Explanation:

1.

The correct option is (C). In case of late credit card payment, the banker imposes the default interest rate on the defaulter. The default interest rate is the highest interest rate imposed on the borrower in case of any default and late payment. The defaulter needs to pay the fees on the late payment.


2.

The correct option is (A). Zach is using the credit card of his parents. Therefore, any irresponsive behavior would affect the credit of his parents. It will not affect Zach’s credit because he is not using his own credit card. Therefore, only the credit of their parents is affected in the case of any carelessness.


3.

The correct option is (B). The interest and price of the bond have an inverse relationship because the bond is a loan instrument, and the increase in the cost of the loan will be equalized by the decrease in the value of the bond. Thus, the value of the bond will decrease in the case of an increase in the interest rate.


4.

The correct option is (C). The interest is calculated as follows:

\begin{aligned}\text{Monthly Interest}&=\text{Principle}\times{\text{Rate}}\times\frac{1}{12}\\&=\$500\times16\%\times\frac{1}{12}\\&=\$6.67\end{aligned}


Learn More:

1. Learn more about the form of money

https://brainly.com/question/1354121

2. Learn more about the implicit cost

https://brainly.com/question/2496755

3. Learn more about economic freedom

https://brainly.com/question/1354197


Answer Details:

Grade: Middle school  

Chapter: Credit rating

Subject: Business studies


Keywords: consequence, credit, card, payments, late,

Fees, paying, introductory, interest, rate,  

higher, Fees, paying, default, interest, rate,  



authorized, user, card, responsible, way, credit, damaged

Zach's, credit, damaged, interest, rates rise, happen, prices, bonds,


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