Terms in this set (10)
Adam's credit card calculates finance charges using the adjusted balance method and a 30-day billing cycle. The table below shows his use of that credit card over three months.
If Adam's credit card has an APR of 14.63%, what is Adam's balance at the end of June?
Dennis has a credit card with an APR of 10.14% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of November. If the finance charge for November is $3.82, which method of calculating the finance charge does Dennis's credit card company use?
adjusted balance method
Laura's credit card has an APR of 12.04%, and it computes finance charges using the daily balance method and a 30-day billing cycle. On June 1st, Laura had a balance of $606.40. She made exactly one transaction in June: a payment of $55.25. If Laura's finance charge for June was $5.71, on which day did she make the payment?
NOT JUNE 8
Which method used to calculate finance charges is most favorable to the card issuer?
not average daily balance
Abby has a credit card which uses the adjusted balance method to compute finance charges. Her card has an APR of 11.83%, and she is on a 30-day billing cycle. The table below shows her transactions in the month of January.
What will Abby's January finance charge be?
Ruth's credit card has an APR of 10.91%, and it computes finance charges using the previous balance method on a 30-day billing cycle. During the April billing cycle, she made a $45.17 payment on April 10th and a $88.34 purchase on April 17th. Her total at the start of May was $847.64. What was her balance at the beginning of April?
To minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments?
Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.
Freida's credit card has an APR of 13.73%, and it calculates her finance charge by using the daily balance method and a 30-day billing cycle. On September 1st, Freida had a balance of $449.22. During the month of September, she made a payment of $85.33 and a purchase of $60.99. How much greater will her September finance charge be if the purchase occurred on September 7th and the payment occurred on September 20th than it would be if the payment occurred on September 7th and the purchase occurred on September 20th?
Yolanda's credit card has an APR of 16.22% and a billing cycle of 30 days. The table below shows her transactions with that credit card in the month of November.
Find Yolanda's finance charge in November using the previous balance method, the adjusted balance method, and the daily balance method. Among those three possible finance charges, what is the value of the one which is neither lowest nor highest?
Yvonne's credit card has an APR of 17.79% and a 30-day billing cycle. The following table details her credit card transactions in the month of June.
Between the previous balance method and the daily balance method, which method of calculating Yvonne's June finance charge will result in a greater finance charge, and how much greater will it be?
NOT The daily balance method will have a finance charge $0.53 greater than the previous balance method.
YOU MIGHT ALSO LIKE...
Finance Charges (Quiz)
OTHER SETS BY THIS CREATOR
THIS SET IS OFTEN IN FOLDERS WITH...
Chapter 3 Financial Math