Vocabulary
This is the cash borrowed from a credit card account.
Cash Advance
John's account shows a starting balance of $303.12, a finance charge of $1.29, and purchases of $18.13 and $71.83. What is John's new balance?
$394.37
If Garret has an APR of 15%, what is his MPR?
.0125 or 1.25%
Maddy bought shoes for $125 and groceries for $75. Later, she returned the shoes. On her monthly statement, she had a previous balance of $100 and a finance charge of $2.13. What will the new balance be?
$177.13
In general, at most, what percentage of your take-home pay would you want to spend on credit card payments.
At most, 20%
This is the amount of money that you can still charge on your credit card
Available credit
Sara's account shows a starting balance of $785.21, a finance charge of $3.31, and purchases of $391.21 and $11.21. What is Sara's new balance?
$1190.94
Devin has an APR of 12% and has an unpaid balance of $800. What is his finance charge?
$8
Matthew used his credit card to but a $500 computer and a $200 printer. Later, he decided to return the printer. When he got his monthly statement, he saw there was a previous balance of $120. The statement also showed a finance charge of $1.15 and a payment of $90. What is the new balance?
$531.15
Luke's take home pay is $5,500 a month. He has two different credit cards. How much, in total, can he pay on his credit cards for the month.
$1100
This is a person who applies with you to open a credit card account
Co-applicant
Meggan's account has a starting balance of $750.12, a finance charge of $7.39, there are no new purchases, and she made a payment of $250. What is her new balance?
$507.51
Derek has an APR of 0% and an unpaid balance of $2,000. What is his finance charge?
$0
When something is returned, are you given a full refund on your purchase? (If I return an item for $20, do IO get $20 back?)
Yes
Your salary for the month is 1,000. Should you spend $250 on credit cards each month?
No, you should, at most, spend $200
This is the yearly interest rate used to find the interest rate due each month on the balance not paid
Katie has a starting balance of $492.19, she makes two purchases, for $50 each, then makes a payment on her card of $75, there is also a finance charge of $3.28. What is her new balance?
$520.47
Amber has an APR of 15% of on her purchases that total $1200, and an APR of 24% on cash advances. She borrows $100. How much are her total finance charges?
$15 + $2 = $17
Jora bought art supplies with her credit card and spent $100 and new pants for $35. She decided to return the pants because she did not like them. Before this she had a balance of $55. On her monthly statement, there was a finance charge of $3.14 and a payment of $100. What is her new balance?
You are making 75,000 a year. Are you able to spend $800 on credit cards each month?
Yes, you can spend up to $1250.
This is a fee you pay each month for borrowing money, it is based on a certain percent of the balance not paid
Minimum Payment
Nick has a starting balance on his card of $800, he makes no new purchases, but there is a finance charge of $11.31, he also makes a payment on his card of $250. What is his new balance?
$561.31
Chuck has an APR of 18% on purchases and an APR of 32% on cash advances. He has total purchases of $800 and he borrows $300. What is the total of his finance charges this month?
$12 + $8 = $20
Amelia decided to pay for her wedding decorations on a credit card. She charged her card for $800. She decided she didn't like some of the decorations, and returned some that were valued at $125. On her statement, she had a previous balance of $25 and a finance charge of $6.19. What is her new balance?
$706.19
You have a yearly salary of 45,000. What is the most you would want to pay on credit cards in one month?
$750