billy buys a new baseball glove for $75 using his mastercard. ed, who is with him, gets a $75 cash advance…

billy buys a new baseball glove for $75 using his mastercard. ed, who is with him, gets a $75 cash advance on his mastercard to buy the identical glove. if they both have a habit of paying off their credit card bill every month, which of the following will happen?\na. neither ed nor billy will have to pay a finance charge.\nb. both ed and billy will have to pay the finance charges.\nc. billy will have to pay a finance charge while ed wont.\nd. ed will have to pay a finance charge while billy wont.

billy buys a new baseball glove for $75 using his mastercard. ed, who is with him, gets a $75 cash advance on his mastercard to buy the identical glove. if they both have a habit of paying off their credit card bill every month, which of the following will happen?\na. neither ed nor billy will have to pay a finance charge.\nb. both ed and billy will have to pay the finance charges.\nc. billy will have to pay a finance charge while ed wont.\nd. ed will have to pay a finance charge while billy wont.

Answer

Brief Explanations:

Credit - card purchases usually have a grace - period during which no finance charge is applied if the balance is paid off in full each month. Cash advances, however, typically do not have a grace - period and start accruing finance charges immediately. Billy made a regular purchase, while Ed took a cash advance.

Answer:

D. Ed will have to pay a finance charge while Billy won't.