You have just graduated from college and purchased a car for $8000. Your credit limit is $11,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 2%. What is your initial credit card balance?

Your initial credit card balance is the amount charged for the car: $8,000. The $11,000 credit limit is the maximum you can borrow, not an additional charge, and monthly interest has not yet been added. The correct choice is $8,000.

AI-written and checked against the verified answer.