CTFA Exam: Total Amount to Pay | Study Guide

The Total Amount to Pay on a Certain Billing

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Question

The total amount that you have to pay on a certain billing is:

Answers

Explanations

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A. B. C. D.

C

The total amount that you have to pay on a certain billing statement depends on the specific terms of the agreement or contract between you and the creditor.

Option A, monthly membership fees, refers to the fixed amount that you are required to pay each month to maintain a certain account, such as a credit card or gym membership. This is not necessarily the total amount you owe on a billing statement.

Option B, minimum payment, refers to the lowest amount that you must pay each billing cycle to avoid late fees and potential damage to your credit score. However, paying only the minimum payment can result in accruing interest charges and taking longer to pay off the balance, ultimately costing you more in the long run.

Option C, outstanding balance, refers to the total amount of debt that you currently owe on a specific account, including any accrued interest or fees. This is the amount that you will need to pay in full to avoid additional interest charges and other penalties.

Option D, balancing act, is not a common financial term and does not relate to the concept of paying a billing statement.

Therefore, the correct answer to the question is option C, outstanding balance.