4.4-4.5A Credit Cards and Statements Worksheet

1) 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?

• $50

• $0

• $440

• $220

2) Brett and Andy applied for the same credit card from the same bank. The bank checked both of their FICO scores. Brett had an excellent credit rating, and Andy had a poor credit rating.

a. Brett was given a card with an APR of 12.6%. What is his monthly percentage rate?

• 2.1%

• 1.05%

• 12.6%

• 6.1%

Brett and Andy applied for the same credit card from the same bank. The bank checked both of their FICO scores. Brett had an excellent credit rating, and Andy had a poor credit rating.

b. Andy was given a card with an APR of 16.2%. What is his monthly percentage rate?

• 12%

• 16.2%

• 1.05%

• 1.35%

2) Brett and Andy applied for the same credit card from the same bank. The bank checked both of their FICO scores. Brett had an excellent credit rating, and Andy had a poor credit rating.

c. If each of them had an average daily balance of $7,980 and had to pay a finance charge, how much more would Andy pay than Brett?

• $107.73

• $23.94

• $83.79

• $32.16

3) 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

a. What is the average daily balance?

• $2,532.13

• $43,699.91

• $1,456.67

• $1,456.66

3) 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

b. What is the finance charge?

• $1,456,66

• $28.21

• $24.03

• $19.80

4) Mrs. Fagin’s daily balances for the past billing period are given below. Find her average daily balance.

For five days, she owed $233.49.

For nine days, she owed $991.08.

For seven days, she owed $778.25.

For three days, she owed $651.11.

For seven days, she owed $770.00.

• $738.01

• $1,253.12

• $742.85

• $992.13

5) Tomika’s credit rating was lowered, and the credit card company raised her APR from 18% to 25.2%.

a. 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?

• $123.56

• $172.98

• $49.42

• $52.91

5) Tomika’s credit rating was lowered, and the credit card company raised her APR from 18% to 25.2%.

b. If this amount is typical of Tomika’s average daily balance all year, how much would the rise in interest rate cost her in a typical year? Round to the nearest ten dollars.

• $593

• $593.04

• $594

• $590

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

CCSS.HSN.Q.A.1