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.RI.8.7

CCSS.RI.9-10.7

CCSS.RL.11-12.7

CCSS.RL.9-10.7

Front

How is the finance charge on a credit card calculated?

Back

The finance charge is typically calculated as a percentage of the average daily balance or the new balance, depending on the credit card issuer's terms.

Tags

CCSS.7.RP.A.3

Front

What is the minimum payment on a credit card?

Back

The minimum payment is the smallest amount a cardholder can pay to keep the account in good standing, often calculated as a percentage of the new balance.

Tags

CCSS.7.RP.A.3

Front

What does 'available credit' mean?

Back

Available credit is the amount of credit a cardholder can still use, calculated by subtracting the current balance from the credit limit.

Front

How do you calculate the average daily balance?

Back

The average daily balance is calculated by adding up the daily balances for each day in the billing cycle and dividing by the number of days in the cycle.

Tags

CCSS.7.NS.A.3

Front

What is the significance of the new balance on a credit card statement?

Back

The new balance is the total amount owed on the credit card at the end of the billing cycle, including purchases, payments, and finance charges.

Tags

CCSS.6.NS.C.7C

Front

What is the formula to calculate the minimum payment if it is 3% of the new balance?

Back

Minimum Payment = New Balance x 0.03.

Tags

CCSS.7.RP.A.3

Front

What does it mean if a credit card has a credit line of $9,000?

Back

A credit line of $9,000 means that the cardholder can borrow up to $9,000 on that credit card.

Front

How do you determine the finance charges for a credit card?

Back

Finance charges can be determined by applying the interest rate to the average daily balance or the new balance, depending on the card's terms.

Tags

CCSS.7.RP.A.3

Front

What is the difference between a credit limit and available credit?

Back

The credit limit is the maximum amount a cardholder can borrow, while available credit is the remaining amount that can still be used after accounting for the current balance.