4.4-4.5B Credit Cards and Statements Worksheet

Front

What is a credit card statement?

Back

A credit card statement is a monthly summary of all transactions made on a credit card, including purchases, payments, fees, and interest charges.

Tags

CCSS.RI.11-12.7

CCSS.RL.11-12.7

CCSS.RI.9-10.7

CCSS.RL.9-10.7

CCSS.RL.8.7

Front

How is the Average Daily Balance calculated?

Back

The Average Daily Balance is calculated by adding up the daily balances for each day in the billing cycle and then dividing by the number of days in that cycle.

Tags

CCSS.6.NS.B.3

Front

What is the formula to calculate the minimum payment on a credit card?

Back

Minimum Payment = New Balance x Minimum Payment Percentage.

Tags

CCSS.7.RP.A.3

Front

What does 'available credit' mean?

Back

Available credit is the amount of credit that a cardholder has left to spend, calculated as the credit limit minus the current balance.

Front

How do you find the Total Available Credit?

Back

Total Available Credit = Credit Limit - Current Balance.

Tags

CCSS.7.EE.B.3

Front

What is the Monthly Periodic Rate?

Back

The Monthly Periodic Rate is the interest rate charged on a credit card balance, expressed as a percentage per month.

Tags

CCSS.7.RP.A.3

Front

How do you calculate the minimum payment if it is based on a percentage of the new balance?

Back

Multiply the new balance by the percentage rate to find the minimum payment.

Tags

CCSS.6.RP.A.3C

Front

What is the significance of the credit line on a credit card?

Back

The credit line is the maximum amount of credit that a cardholder can use on their credit card.

Front

What is the difference between the new balance and the previous balance on a credit card statement?

Back

The new balance reflects all transactions during the billing cycle, while the previous balance is the amount owed at the end of the last billing cycle.

Tags

CCSS.7.NS.A.1B

Front

What does it mean if a credit card has a 2.4% Monthly Periodic Rate?

Back

It means that for each month, 2.4% of the outstanding balance will be charged as interest.

Tags

CCSS.7.RP.A.3