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she purchases $200 in clothes with her credit card. On the 15th day of
the month she makes a payment on her credit card of $500. The
average daily balance for the month including the new purchase is
$883. The average daily balance for the month excluding the new
purchase is $750. Sarah's interest rate is 1.5% for the month. Sarah's
bank calculates the finance charge on the credit card by using the
average daily balance, excluding new purchases. What would Sarah's
finance charges be for the month?
$7.50
$13.25
$18.00
$15.00
$11.25
Question 17. Question : (TCO 3) If Sarah goes out and spends $600 in
new clothes for herself, putting it all on her credit card after her
husband returns at 4 a.m. the previous morning from a night on the
town, this is an example of which of the following?
Misunderstanding or lack of communication
Keeping up with the Joneses
The expectation of instant comfort
The use of money to punish
Overindulgence of children
Question 18. Question : (TCO 3) Steve has three children and has
purchased each of them his or her own TV that is placed in his or her
respective room. Which reason for indebtedness is this an example of?