Mike has a MasterCard with an annual fee of $25, an 18% interest rate, and a $1,000 credit limit. He always pays the total outstanding balance monthly. His most recent monthly statement lists the previous month's payment, new charges in the current month totaling $1,500, and a $30 fee. The fee is most likely the result of:
A) interest charges.
B) his annual fee.
C) an over-the-limit fee.
D) a late payment.
E) transaction fees on purchases.

Question

Quizplus · Accepted Answer

The $30 fee is likely an over-the-limit fee, as Mike has a credit limit of $1,000 and his new charges totaled $1,500. This means he exceeded his credit limit and was charged a fee. It is not related to interest charges, his annual fee, a late payment, or transaction fees on purchases.

Mike Has a MasterCard with an Annual Fee of $25