The Shumer Box

What is the introductory APR for purchases made during the first six months?

• 15.24% to 23.24%

• 25.24%

• 0.00%

• 30.24%

After the introductory period, what will the APR for purchases be on the Platinum Card?

• 0.00%

• 15.24% to 23.24%

• 25.24%

• 30.24%

What is the APR for cash advances on the Platinum Card?

• 15.24% to 23.24%

• 0.00%

• 25.24%

• 30.24%

What is the minimum interest charge for the Platinum Card?

• $0.00

• $1.00

• 3% of the transaction

• $10 or 4% of the transaction

What is the fee for a balance transfer on the Platinum Card?

• $5 or 3% of the transfer, whichever is greater

• $10 or 4% of the transfer, whichever is greater

• 3% of the U.S. Dollar amount of each transaction

• No fee

What is the penalty for a late payment on the Platinum Card?

• Up to $35

• $1.00

• 3% of the U.S. Dollar amount of each transaction

• No fee

Jordan gets confused and uses his credit card to get $40 in cash from an ATM instead of using his debit card. Based on this agreement, what is the impact of this decision?

• There is no impact since credit card and debit card terms tend to be the same.

• A $10 cash advance fee will be charged ONLY.

• An A.P.R. of 25.24% will be applied on the $40 until it is paid back ONLY.

• A $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back.

Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year?

• She would have paid interest charges of $2,000.

• She would have paid interest charges of $20.

• The credit card company would have paid Louisa $20.

• She would have paid interest charges of $200.

After the introductory period, all consumers who have this Platinum Card will...

• Pay the same A.P.R.

• Qualify for an A.P.R. based on their creditworthiness

• Pay the Penalty A.P.R. of 30.24%

• Be charged an Annual Fee

As you will see from this agreement, there are different A.P.R.s applied based on how the credit card is used. Which transaction type has the highest A.P.R.?

• A.P.R. triggered by a late payment

• A.P.R. applied on Purchases made during the Introductory Period

• A.P.R. applied to a Balance Transfer

• A.P.R. applied to a Cash Advance