WorksheetsChapter 4 Sections 1 and 2 Review
Total questions: 30
Worksheet time: 22mins
What is one advantage of having a credit card?
It prevents you from spending more than you earn.
It allows you to make purchases without carrying lots of cash.
It encourages you to budget your money wisely.
It helps you pay off debts that you may have.
Michelle Peterson’s credit card statement for the month of December showed a membership fee of $40, a late fee of $15, a finance charge of $11.72, and an over-the-limit fee of $14. What was the total cost of the card to Michelle in December?
78.72
$80.72
$79.72
$81.72
Lu Yang paid an average of $32 per month in finance charges on his credit card. His credit card has an annual fee of $75. What was Lu's total cost of credit for the year?
$107
$267
$459
$1,284
Bella Tuller has a credit card with an APR of 15% and a monthly periodic rate. The credit card company uses the previous balance method to calculate the finance charges. If Bella's previous balance is $900, what are the finance charges for the month?
$11.10
$11.25
$32.67
$135
Janet found an unauthorized charge of $76.03 on her credit card statement. If the new balance was $281.48, what is her correct new balance?
$281.48
$3.70
$357.51
$205.45
Joe's credit card company requires a minimum balance of 3% of the current balance each billing cycle. If Joe's current balance is $125.40, what is his minimum payment due?
No Minimum Payment
$4.76
$2.76
$3.76
The balance of your credit card is $327.67, which is subject to finance charges at an APR of 19% and uses a monthly periodic rate. What will your current month's finance charges be?
$5.18
$5.20
$5.00
$5.15
A credit card statement closing date is the last date on which transactions are posted to the statement.
True
False
There is NOT a credit limit provided on a credit card statement.
False
True
You do not record transactions on a credit card statement.
True
False
Michael Lane checked his credit card statement and noticed a sale for $82.99 that was unauthorized. He also found that a sale for $52.87 had been listed as $58.27. If the new balance on his statement was $310.65, what is his correct new balance?
$224.26
$220.26
$222.26
$221.26
Tara Fields’ credit card company uses the previous balance method to calculate finance charges. It has an APR of 17% and uses a monthly periodic rate rounded to the nearest ten-thousandth. Tara’s credit card statement for April showed a previous balance of $281.67, new purchases and fees of $112.93, and payments and credits of $200.00. What is Tara’s finance charge for April and her new balance?
$3.00, $198.60
$3.00, $200.60
$4.00, $200.60
$4.00, $198.60
To find the monthly periodic rate, you would divide by 365.
False
True
The amount you must pay on a credit card, based on a percentage of the outstanding balance.
minimum fee
minimum payment
monthly statement
minimum monthly interest charge
People who pay off their credit card balance in full each month pay less interest than those who do not.
true
false
Balance transfer is when you move a balance from a credit card to a checking account.
True
False
People do a balance transfer from a ________ interest card to a ________ interest card.
low, high
high, low
Lucy is charged a finance charge on a credit card balance of $800. Her card has an APR of 15%. What is her monthly finance charge if the company uses a monthly periodic rate?
100
10
15
20
Julie has a credit card that has an APR of 15%, applied at a daily periodic rate to the previous balance. Her previous balance is $567.31. She made new purchases totaling $128.92 and a payment of $125 in the month of June. What is her new balance?
$576.53
$578.22
$580.73
