Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.8 Credit Cards - Exercise Set 8.8 - Page 565: 26

Answer

The credit card holder will have to incur the interest charges associated with the untimed payment of credit card bill

Work Step by Step

: If the credit card holder is willing to purchase the expensive wedding gift at any date before September , then in that case that credit card holder will be charged interest for the untimed payment of dues of credit card bills. It is just because if the purchase would be made prior to September , then the bill for the same will be accounted on October , and even after a lapse of days, the November is quite far from the corresponding due date for credit card bill payment. Hence, the person will not be able to pay the dues on time. As a result, he will have to bear the interest charges.
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