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Joseph received a new credit card in the mail, and his first purchase was a new pair of sneakers for $115. Joseph's credit card has a 1% introductory APR, a late fee of $29, and an annual membership fee of $0. How much will Joseph have to pay to have a $0 balance on his credit card, if he makes his payment before the end of the grace period?


$116.15

$115

113.85

$144

Verified Answer :

The amount Joseph will have to pay to have a $0 balance on his credit card is $116.15.

How do we calculate the amount to pay on a credit card?

Since Joseph wants to make his payment before the end of the grace period, it implies that he will only pay the 1% introductory APR but avoid a late fee, and the annual membership fee which is already $0,

Therefore, we have:

Amount to pay = First purchase * (100% + Introductory APR)

Amount to pay = $115 * (100% + 1%)

Amount to pay = $116. 15

Learn more about credit cards here: https://brainly.com/question/971120.

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