FA 3-5 Credit Cards

If the APR on a credit card is 22.2%, what is the monthly interest rate?

• 1.37%

• 1.25%

• 1.12%

• 1.85%

If the monthly interest rate on a credit card is p percent, express the APR algebraically.

• p

• 7p

• 30p

• 12p

The average daily balance for Dave’s last credit card statement was $1,213.44, and he had to pay

a finance charge. The APR is 20.4%. What is the monthly interest rate? What is the finance charge

for the month?

• 1.1%; $22.63

• 1.9%; $27.63

• 1.5%; $24.63

• 1.7%; $20.63

Mr. Reis had these daily balances on his credit card for his last billing period. He did not pay the

card in full the previous month, so he will have to pay a finance charge. The APR is 19.8%.

six days @ $341.22 ten days @ $987.45

three days @ $2,122.33 eleven days @ $2,310.10

What is the average daily balance?

• $1,917.32

• $1,478.45

• $1,456.66

• $1,235.12

Mr. Reis had these daily balances on his credit card for his last billing period. He did not pay the

card in full the previous month, so he will have to pay a finance charge. The APR is 19.8%.

six days @ $341.22 ten days @ $987.45

three days @ $2,122.33 eleven days @ $2,310.10

What is the finance charge?

• $24.03

• $12.36

• $14.98

• $17.89

Mrs. Fagin’s daily balances for the past billing period are given below.

For five days she owed $233.49. For three days she owed $651.11.

For nine days she owed $991.08. For seven days she owed $770.00.

For seven days she owed $778.25.

Find Mrs. Fagin’s average daily balance.

• $456.78

• $738.01

• $321.45

• $456.89

Mrs. Cykman’s credit card was stolen, and she did not realize it for several days. The thief

charged a $440 watch while using it. According to the Truth-in-Lending Act, at most how much

of this is Mrs. Cykman responsible for paying?

• $500

• $50

• $150

• $5000

Pat’s ending balance on his debit card last month was $233.55. This month he had $542 worth of

purchases and $710 worth of deposits. What is his ending balance for this month?

• $365.12

• $123.89

• $401.55

• $965.45

Tomika’s credit rating was lowered, and the credit card company raised her APR from 18% to

25.2%.

If her average daily balance this month is $8,237, what is the increase in this month’s finance

charge due to the higher APR?

• $78.32

• $19.35

• $49.42

• $32.65

Linda and Rob charged a $67.44 restaurant bill on their credit card. They gave the card to the

waitress, who accidentally transposed two digits and charged them $76.44. They did not notice

this until they received their statement later that month. Their card has an 18% APR.

How much were Linda and Rob overcharged?

• $.90

• $9

• $19

• $29