Credit vs. Cash Answers

Natasha had a $922.93 balance on her credit card at the beginning of September. Her credit card has an APR of 9.89%, compounded monthly, and a minimum monthly payment of 3.08% of the total balance. The following table shows Natasha’s credit card purchases over the next two months. Month Cost ($) September 33.70 October 61.70 October 27.80 If Natasha makes only the minimum payments, what will her balance at the beginning of November? (Assume that the interest accrues before the monthly payment, and that the monthly payment occurs at the end of the month. Round all dollar values to the nearest cent.) a. $1,180.48 b. $1,064.55 c. $1,000.93 d. $1,123.97 Please select the best answer from the choices provided

What is the name of the legally mandated area on every credit solicitation which provides information about the terms and conditions of the card?a.Schroeder Boxb.Schumer Boxc.Disclosure Boxd.Disclaimer Box

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.a.$866.74b.$868.40c.$818.41d.$926.82

What is an open line of credit?a.A line of credit which has no current balance.b.A line of credit with a variable interest rate.c.A line of credit against which additional debt may be drawn.d.A line of credit which has no credit history requirements.

Rachel has developed a plan to start paying off her credit card debt, and has stopped making purchases with her credit card. She has a credit card balance of $1,120.87. Her card has an APR of 14.12%, compounded monthly, and has a minimum monthly payment of 3.15% of the total balance, which is calculated after the monthly interest. Rachel has decided to pay off her debt by making identical monthly payments over a period of two years. If she starts this month, how much greater will her first payment be than the minimum payment required? (Round final answer to the nearest dollar.) a. $17 b. $14 c. $19 d. $11 Please select the best answer from the choices provided

Use the following compound interest formula to complete the problem. Victor has a credit card with an APR of 13.66%, compounded monthly. He currently owes a balance of $1,349.34. Assuming that Victor makes no purchases or payments, how much will he owe after one year, to the nearest cent? a. $1,349.34 b. $1,533.66 c. $1,545.65 d. $1,364.70 Please select the best answer from the choices provided

Jordan’s credit card has an APR of 10.59%, compounded monthly. He is required to make a minimum payment of 3.96% of his current balance every month. At the beginning of March, Jordan had a balance of $628.16 on his credit card. The following table shows his credit card purchases over the next few months.MonthCost ($)March50.81March48.04April77.36April32.40April49.20May25.79May79.39May79.08If Jordan makes only the minimum monthly payments in March, April, and May, what will his balance be after he makes the minimum payment for May? (Assume that interest is compounded before the monthly payment is made, and that the monthly payment is applied at the end of the month. Round all dollar values to the nearest cent.)a.$1,094.10b.$988.97c.$967.60d.$1,070.23

Use the following compound interest formula to complete the problem. Victor has a credit card with an APR of 13.66%, compounded monthly. He currently owes a balance of $1,349.34. Assuming that Victor makes no purchases or payments, how much will he owe after one year, to the nearest cent? a. $1,349.34 b. $1,533.66 c. $1,545.65 d. $1,364.70 Please select the best answer from the choices provided

Marilyn has two credit cards, D and E. Card D has a balance of $691.64, and Card E has a balance of $1,014.22. The minimum monthly payment on Card D is 3.57% of the total balance, and the minimum monthly payment on Card E is 2.51% of the total balance. How much greater is the minimum payment on Card E than on Card D?a.$18.85b.$8.10c.$11.24d.$0.77

Darryl’s credit card has a minimum monthly payment of 2.51% of the card’s balance. If Darryl currently owes $1,431.72, what is his minimum payment, to the nearest cent?a.$29.95b.$33.67c.$2.99d.$35.94

Which of the following types of credits would best describe credit cards?a.closed and securedb.closed and unsecuredc.open and securedd.open and unsecured

Which of the following types of credits would best describe credit cards?a.closed and securedb.closed and unsecuredc.open and securedd.open and unsecured

What is an open line of credit?a.A line of credit which has no current balance.b.A line of credit with a variable interest rate.c.A line of credit against which additional debt may be drawn.d.A line of credit which has no credit history requirements.

Use the following compound interest formula to complete the problem. Currently you have two credit cards, H and I. Card H has a balance of $1,186.44 and an interest rate of 14.74%, compounded annually. Card I has a balance of $1,522.16 and an interest rate of 12.05%, compounded monthly. Assuming that you make no purchases and no payments with either card, after three years, which card’s balance will have increased by more, and how much greater will that increase be? a. Card I’s balance increased by $53.16 more than Card H’s balance. b. Card I’s balance increased by $13.45 more than Card H’s balance. c. Card H’s balance increased by $35.61 more than Card I’s balance. d. Card H’s balance increased by $49.06 more than Card I’s balance. Please select the best answer from the choices provided

Darryl’s credit card has a minimum monthly payment of 2.51% of the card’s balance. If Darryl currently owes $1,431.72, what is his minimum payment, to the nearest cent?a.$29.95b.$33.67c.$2.99d.$35.94

You are looking for your first credit card. You plan to use this credit card only for emergencies and to pay the credit card balance in full each month. Which credit card feature is most important? a. No annual fee b. Low APR c. Generous rewards program d. No balance transfer fee Please select the best answer from the choices provided

Jeff has a balance of $2,513.77 on his credit card. He would like to pay off his card over the course of a year and a half by making identical monthly payments. The APR on his card is 10.66%, compounded monthly. Assuming that Jeff makes no additional purchases with his card, how much will he have to pay every month to reach his goal? (Round all dollar values to the nearest cent.)a.$151.73b.$162.57c.$139.65d.$147.64

What is a secure line of credit?a.A line of credit offered only to individuals with excellent credit ratings.b.A line of credit offered to a business or corporation.c.A line of credit backed by the government.d.A line of credit backed by collateral.

Jordan’s credit card has an APR of 10.59%, compounded monthly. He is required to make a minimum payment of 3.96% of his current balance every month. At the beginning of March, Jordan had a balance of $628.16 on his credit card. The following table shows his credit card purchases over the next few months.MonthCost ($)March50.81March48.04April77.36April32.40April49.20May25.79May79.39May79.08If Jordan makes only the minimum monthly payments in March, April, and May, what will his balance be after he makes the minimum payment for May? (Assume that interest is compounded before the monthly payment is made, and that the monthly payment is applied at the end of the month. Round all dollar values to the nearest cent.)a.$1,094.10b.$988.97c.$967.60d.$1,070.23

What is the prime rate?a.The prime rate is the best interest rate that banks offer their most creditworthy customers.b.The prime rate is the interest rate on a credit card, unadjusted for interval compounding.c.The prime rate is the number which indicates your credit history.d.The prime rate is the highest interest rate allowed by law.

Natasha had a $922.93 balance on her credit card at the beginning of September. Her credit card has an APR of 9.89%, compounded monthly, and a minimum monthly payment of 3.08% of the total balance. The following table shows Natasha’s credit card purchases over the next two months. Month Cost ($) September 33.70 October 61.70 October 27.80 If Natasha makes only the minimum payments, what will her balance at the beginning of November? (Assume that the interest accrues before the monthly payment, and that the monthly payment occurs at the end of the month. Round all dollar values to the nearest cent.) a. $1,180.48 b. $1,064.55 c. $1,000.93 d. $1,123.97 Please select the best answer from the choices provided

Rachel has developed a plan to start paying off her credit card debt, and has stopped making purchases with her credit card. She has a credit card balance of $1,120.87. Her card has an APR of 14.12%, compounded monthly, and has a minimum monthly payment of 3.15% of the total balance, which is calculated after the monthly interest. Rachel has decided to pay off her debt by making identical monthly payments over a period of two years. If she starts this month, how much greater will her first payment be than the minimum payment required? (Round final answer to the nearest dollar.) a. $17 b. $14 c. $19 d. $11 Please select the best answer from the choices provided

Which of the following is not a kind of consumer credit?a.installment creditb.personal loansc.service creditd.marginal credit

Use the following compound interest formula to complete the problem. Currently you have two credit cards, H and I. Card H has a balance of $1,186.44 and an interest rate of 14.74%, compounded annually. Card I has a balance of $1,522.16 and an interest rate of 12.05%, compounded monthly. Assuming that you make no purchases and no payments with either card, after three years, which card’s balance will have increased by more, and how much greater will that increase be? a. Card I’s balance increased by $53.16 more than Card H’s balance. b. Card I’s balance increased by $13.45 more than Card H’s balance. c. Card H’s balance increased by $35.61 more than Card I’s balance. d. Card H’s balance increased by $49.06 more than Card I’s balance. Please select the best answer from the choices provided

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.a.$866.74b.$868.40c.$818.41d.$926.82

What is the name of the legally mandated area on every credit solicitation which provides information about the terms and conditions of the card?a.Schroeder Boxb.Schumer Boxc.Disclosure Boxd.Disclaimer Box