Shopping with Credit

You have been given a brand, new credit card! Your credit limit is $5000.00, and your interest rate is 19.9%. Your first purchases are some new pillowcases, sheets, and blankets for your bed. The total cost is $77.00. What will your minimum monthly payment be at 3%? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $3.20

• $3.05

• $2.31

• $2.76

Answer explanation

Remember, to find the minimum monthly payment, you need to multiply the total balance by 3% (.03).

You're thinking that today you'd like to buy some fresh flowers to decorate your house. Your credit card, which has a 19.9% interest rate, has a zero balance, and the flowers will cost $65.25. If you make payments of $4.50 a month, what will your total interest be? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $10.00

• $12.00

• $11.00

• $9.00

Answer explanation

Note that your APR (Annual Percentage Rate) is 19.9%. And also note that you are not paying the minimum monthly payment, but paying $4.50 per month.

You owe $127.00 on your credit card. You credit card's interest rate is 27.00%. You are only able to pay back the minimum payment due each month, which is 3%. How long will it take you to pay off your debt? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• 42 months

• 49 months

• 55 months

• 63 months

Answer explanation

Heads Up! The APR (Annual Percentage Rate) on this credit card is not 19.9%. It's 27.00%. Make you adjust for that on your Credit Card Payoff Calculator!

Your credit card has a 19.9% interest rate. If you spent $235.00 using your credit card, and you paid $25 per month, how long will it take to pay off your debt? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• 10 months

• 11 months

• 12 months

• 13 months

Answer explanation

This credit card's APR (Annual Percentage Rate) is 19.9%. Make adjustments for that on your Credit Card Payoff Calendar! And you are NOT paying the minimum 3% monthly payment. Check the question to see what you are paying each month.

You have a $337.00 debt on your credit card. Your interest rate is 19.9%. If you pay $16 per month to pay it off, how much will you pay in interest? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $67.00

• $81.00

• $104.00

• $112.00

Answer explanation

OK, you're looking for total interest here. The question includes your credit card's balance, the APR (Annual Percentage Rate), and monthly payment.

You really want to buy that new iPhone 14, but it costs $1200.00. You've decided to use your credit card. Your interest rate is 15.97%. You have decided to only pay the minimum monthly payment, which is 3%. Figure out how much you will pay in interest. Including the original purchase price of the iPhone and the interest that you will pay, what will be your total cost for that iPhone? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $1596.00

• $1354.00

• $1745.00

• $1692.00

Answer explanation

Your APR (Annual Percentage Rate) for this credit card is NOT 19.9%. Check it!

With your bill paid off and starting back at $0, the latest video game comes out and costs $60. You put it on your credit card and cannot afford to pay the whole bill at once, so you make the minimum payment each month, which is 3%. You credit card has a 19.9% interest rate. What will your minimum payment due be each month? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $1.60

• $1.70

• $1.80

• $1.90

With your bill paid off and starting back at $0, the latest video game comes out and costs $60. You put it on your credit card and cannot afford to pay the whole bill at once, so you make the minimum payment each month, which is 3%. You credit card has a 19.9% interest rate. What will be your total interest that you will pay on this debt? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $28

• $27

• $29

• $26

With your bill paid off and starting back at $0, the latest video game comes out and costs $60. You put it on your credit card and can’t afford to pay the whole bill all at once, so you make the minimum payment each month, which is 3%. Your interest rate will be 19.9%. When you include the purchase price AND the interest, how much will the video game cost in total? (Credit Card Pay Off Calculator https://www.bankrate.com/finance/credit-cards/credit-card-payoff-calculator/ )

• $63

• $95

• $88

• $120

True or False

Paying more than the monthly minimum will lower the amount of interest you will pay on your debt.

• True

• False