Question

Maya went shopping. She charged most of her clothing purchases to a credit card. She also used her card to make several small online purchases over the next few months. She only ever makes the minimum payment. After six months, she is surprised by the total amount she still owes. What is the most likely cause?

She forgot about sales tax
She forgot about the interest rate
She made too many online purchases
She thought she had earned rewards

Answer 1

She forgot about the interest rate. When paying the minimum payment each month, there are still debts which are stilling being affected by interest. More debts = more total interest.

Answer 2

Answer:

She forgot about the interest rate.

Explanation:

Maya most likely forgot about the interest rate. Credit card companies allow you to purchase goods that you are not going to pay for immediately. This means that you will owe this amount to the company. When you pay your total balance before the due date each month, you will only pay the amoun that you have actually spent. However, if you do not pay in full, interests are charged, which lead you to pay more than you originally spent.