BUSN 380 STUDY Career Path Begins/busn380study.com BUSN 380 STUDY Career Path Begins/busn380study.com | Page 58

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. If Jeff rushes to purchase a home by obtaining an interest-only loan, and the reason why he wants a home is because he wants to have a house just like the one that his parents had when he was a teenager, this is an example of which of the following? Misunderstanding or lack of communication The use of money to punish Overindulgence of children Keeping up with the Joneses The expectation of instant comfort Question 18. Over time, which method of payment is likely to be the least expensive? Bank credit card Check written on a home equity line of credit (HELOC)