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Unit 4: Lesson 3 Homework

Total questions: 17

Worksheet time: 46mins

Name
Class
Date
1.
What is an annual fee? 
a)
The act of transferring money 
b)
A fee charged by a card issuer for being a card holder. 
c)
The days between the last statement and the current statement. 
d)
A fee charged to a cardholder's account once a payment is late. 
2.
What is a finance charge?
a)
The amount of interest charged to an account for the billing cycle. 
b)
A fixed annual percentage rate of the finance charge.
c)
A charge from the bank for getting a credit card. 
d)
None of the above. 
3.
Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge. 
a)
True
b)
False 
4.

The act of transferring debt from one credit card account to another.

a)

Annual Transfers

b)

Balance Transfers

c)

Penalty APR

d)

Variable-Rate APR

5.

If someone had a balance on their credit card of $327, and an APR of 24%, how much would they pay for the finance charge? Assume a 30 day billing cycle, using the daily rate.

a)

$10.55

b)

$2.75

c)

$196.20

d)

$6.45

6.
If I have an 18% APR, what is my monthly INTEREST RATE?
a)
1.5%
b)
12%
c)
18%
d)
2.5%
7.

If I have an 24% APR, what is my DAILY INTEREST RATE?

a)

0.0007

b)

1.1585

c)

0.1800

d)

0.02

8.

Credit Card Balance: $1,250.00

APR: 22%

Days in Billing Cycle: 31

What would be the finance charge for the month? (Daily rate)

a)

$28.91

b)

$23.36

c)

$20.57

d)

$22.92

9.
Balance - $10,000
Interest Rate - 2.7%
How much did you pay in interest?
a)
$270.00
b)
$280.00
c)
$275.00
d)
$273.00
10.

The maximum dollar amount that can be borrowed.

a)

Balance Limit

b)

Credit Limit

c)

Over-the-limit Fee

d)

Maximum Fee

11.

Using the formula above, calculate the daily periodic rate if the APR is 28.99%

a)

2.41583

b)

0.079425

c)

0.0241583

d)

0.2899

12.

Using the formula above, calculate the monthly periodic rate if the APR is 12.89%

a)

0.000353

b)

0.0353

c)

0.1289

d)

0.0107

13.

If your balance before interest is $23,483.92 and your minimum payment is $952.41, what percentage of your balance is your minimum payment?

a)

$22,531.51

b)

4.056%

c)

0.04056%

d)

24.65%

14.

Given a daily periodic rate of 0.05031%, calculate the daily interest charge if the average daily balance is $2,453.85

a)

$123.45

b)

$1.23

c)

$14.81

d)

$450.60

15.

If your credit card balance is $850 and your APR is 19%, what is the finance charge for a 30-day billing cycle using the daily rate?

a)

$4.44

b)

$8.90

c)

$13.27

d)

$19.00

16.

Which of the following best describes a credit limit?

a)

The minimum payment required each month.

b)

The highest balance you can carry on your credit card.

c)

The total interest paid over a year.

d)

The amount of cash you can withdraw from an ATM.

17.

If your APR is 15% and you want to find your daily periodic rate, which formula should you use?

a)

APR multiplied by 12

b)

APR divided by 365

c)

APR divided by 12

d)

APR multiplied by 365