Unit 4: Quiz Lessons 1 to 3

Financially savvy people take advantage of the grace period on major purchases and pay the balance off in​ full; thus avoiding finance charges.

• True

• False

Assume a 31−day month to calculate your average daily balance for your credit card bill. Your daily balance for the first 10 days was​ $1,400, for the next 10 days was​ $1900, and for the last 10 days was​ $2700. What will your average daily balance be at the end of the​ month?

• $193.58

• $1.94

• $1935.48

• $19.35

Assuming the APR on your credit card is​ 18% and your average daily balance this month was​ $10,000, what will your interest or finance charges for the month​ be? Use monthly periodic rate.

• $60

• $150

• ​$1.50

• $180

If Lana paid $825.80 on a $3,169.78 credit card balance, what is the new balance?

• $2,343.98

• $3,995.58

• $3,087.02

• $2,546.98

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

Ralph just received his June FlashCard bill. He did not pay his May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Ralph’s finance charge be?

• $7.05

• $7.12

• $7.45

• $7.78

Mary’s average daily balance for last month was $750. The finance charge was $12.24. What was the APR?

• 0.0163%

• 19.6%

• 1.63%

• 0.196%

The _______ is the interest that is charged to a credit account if the account holder does not pay off the balance in full. 

• charge account 
• account statement
• credit card 
• finance charge

Tags

CCSS.7.RP.A.3

If you purchase an item on a credit card, then the grace period means you can "try" out the item and return it before you have to pay on it.

• True

• False

Assume a 30−day month to calculate your average daily balance for your credit card bill. Your daily balance for the first 12 days was​ $5,250 for the next 10 days was​ $4700, and for the last 8 days was​ $4615. What will your average daily balance be at the end of the​ month?

• $36148.00

• $5125.38

• $303

• $4897.33

Mary’s average daily balance for last month was $1026.25. The finance charge was $15.36. What was the APR?

• 0.014%

• 19.6%

• 18%

• 14%