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Credit card Finance charge and Balance

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Ying borrowed $350 for 60 days from his credit card company using a cash advance. The company charged a daily finance charge of 0.052%. What was Ying’s finance charge for the loan?

a)

$10.92

b)

$350

c)

$11.25

d)

$24.78

2.

Marta ’s credit card statement lists a previous balance of $759.86, new purchases and fees of

$420.78, and payments and credits of $450. Marta’s card company charges an APR of 14% on the adjusted balance. What is Marta’s finance charge?

a)

$10.92

b)

$3.62

c)

$8.87

d)

$22.71

3.

Marta ’s credit card statement lists a previous balance of $759.86, new purchases and fees of

$420.78, and payments and credits of $450. Marta’s card company charges an APR of 14% on the previous balance. What is Marta’s finance charge?

a)

$10.92

b)

$3.62

c)

$8.87

d)

$22.71

4.

You borrowed $350 for 80 days from your credit card company using cash advance. The company charged a daily finance charge of 0.052%. What was your finance charge for the loan?

a)

$10.92

b)

$14.56

c)

$11.25

d)

$24.78

5.

How do you find the finance charge for a $13,000 cash advance for 55 days on a credit card company with a daily finance charge of 0.07%?

a)

$13000(0.07)(55)

b)

$13000(0.007)(55)

c)

$13000(0.0007)(55)

d)

$13000(0.07)(55)/12

6.

    Last month, Fred was charged for his annual membership fee of $25, a late fee of $28, and a $300 cash advance that he borrowed for 30 days with daily finance charge of 0.055% . What was the total amount that the credit card company charged Fred?

a)

$457.98

b)

$357.95

c)

$216.33

d)

$513.20

7.

    A credit card company issues a statement listing the following: previous balance, $461.88; purchases,

$296.89; fees, $65; payments, $400; credits, $25. The credit card company uses an APR of 12% and the adjusted balance method of computing finance charges. What is the finance charge for the month?

a)

$0.37

b)

$399.14

c)

$36.88

d)

$410.12

8.

    A credit card company issues a statement listing the following: previous balance, $461.88; purchases,

$296.89; fees, $65; payments, $400; credits, $25. The credit card company uses an APR of 12% and the adjusted balance method of computing finance charges. What is the adjusted balance?

a)

$0.37

b)

$399.14

c)

$36.88

d)

$410.12

9.

    A credit card company issues a statement listing the following: previous balance, $461.88; purchases,

$296.89; fees, $65; payments, $400; credits, $25. The credit card company uses an APR of 12% and the adjusted balance method of computing finance charges. What is the new balance?

a)

$0.37

b)

$399.14

c)

$36.88

d)

$410.12

10.

    How do you find Adjusted Balance?

a)

Previous Balance + (Payments + Credits)

b)

Previous Balance / (Payments + Credits)

c)

Previous Balance – (Payments + Credits)

d)

Adjusted Balance -Previous Balance

11.

    Which Method of finance charges would charges you less finance charge?

a)

Daily Balance Method

b)

Previous Balance Method

c)

Adjusted Balance Method