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WorksheetsQuiz Review: Average daily balance
Total questions: 13
Worksheet time: 39mins
Financially savvy people take advantage of the grace period on major purchases and pay the balance off in full; thus avoiding finance charges.
True
False
Typically, the credit card issuer allows you a grace period, which means
interest charges are reduced during this time.
you are not charged any interest during this grace period.
you must pay your balance off in full to benefit from the grace period.
you do not have to make a payment during the current month.
both B and C apply.
Assume a 31−day month to calculate your average daily balance for your credit card bill. Your daily balance for the first 10 days was $1,400, for the next 10 days was $1900, and for the last 10 days was $2700. What will your average daily balance be at the end of the month?
$193.58
$1.94
$1935.48
$19.35
Assuming the APR on your credit card is 18% and your average daily balance this month was $10,000, what will your interest or finance charges for the month be? Use monthly periodic rate.
$60
$150
$1.50
$180
Mary’s average daily balance for last month was $750. The finance charge was $12.24. What was the APR?
0.0163%
19.6%
1.63%
0.196%
Hannah did not pay her American Express credit card bill in full in May. Her June bill showed a finance charge, and she wants to see whether or not it is correct. The average daily balance is $1,359.25, and the APR is 22.2%. Find the finance charge for her June statement.
$301.75
$19.57
$25.15
$403.97
Ralph just received his June FlashCard bill. He did not pay his May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Ralph’s finance charge be?
$7.05
$7.12
$7.45
$7.78
If the sum of the daily balances of a credit card totals $3,865.50 over 30 days, what is the average daily balance?
$238.85
$128.85
$218.58
$175.96
If Lana paid $825.80 on a $3,169.78 credit card balance, what is the new balance?
$2,343.98
$3,995.58
$3,087.02
$2,546.98
If Rocky's credit card has a $1,329.64 balance and he charged $528.44 in new purchases, what is the new balance?
$1,972.32
$1,867.45
$896.45
$1,858.08
Piper's credit card has a $9626.42 balance. She makes a $223.50 payment. What is the new balance?
$9845.92
$9402.92
$43.07
$782.43
