Which answer choice does not represent an advantage to using credit cards over other forms of payment?a.payments made online with credit cardb.payments made abroad with credit cardc.emergency contact number for lost cardd.interest due on outstanding balance
Which of the following statements is not true of cash advances? a. Credit card companies offer easy access to cash through ATM’s or checks that can be written to yourself and cashed. b. Credit card companies apply payments to cash advance balances first because the interest is higher. c. The APR of a cash advance is higher than that of regular credit card purchases. d. Credit card companies place limits on the amount of cash you can receive through a cash advance. Please select the best answer from the choices provided
Ralph is purchasing a new gaming system for $300.00. He is trying to decide whether he wants to use cash or his credit card to pay. He has $600.00 available in his checking account. Which of the following is not an argument that justifies Ralph's use of his cash to purchase the gaming system?a.Using cash can help Ralph improve his credit score.b.Using cash may limit overspending or impulse buying.c.Cash doesn't come with any potential "over limit" or "late payment" fees.d.Cash will be the easiest method of payment with very few security measures involved.
Paul is going to buy a collectible vintage painting from a local art gallery. The painting is priced at $600 in the gallery. The gallery owner does accept credit cards but prefers cash. In fact, he offers to give Paul a 5% discount if he can pay in cash. Paul doesn't have any cash but can get a cash advance on his credit card. His credit card has an APR of 16% on credit purchases and a 32% APR on cash advances. Assuming Paul wants to pay the painting off over 12 months, which of the following is true? a. Paul will pay a total of $696, over 12 months, if he purchases the painting with his credit card. b. Paul will pay a total of $653.28, over 12 months, if he purchases the painting with his credit card. c. Paul will pay a total of $782.40, over 12 months, if he purchases the painting with a cash advance for discounted purchase price. d. Paul will pay a total of $708.96, over 12 months, if he purchases the painting with a cash advance for discounted purchase price. Please select the best answer from the choices provided.
Tom has offered to sell Julian his motorcycle for $1,200. Julian knows this is a very good deal, since the same motorcycle can be purchased at the dealership for $1,800. Since Julian doesn’t have $1,200 and Tom does not accept credit cards, they both think a cash advance might be a good idea. Julian’s credit card company can offer him a cash advance for the $1,200 he needs at an interest rate of 26%. He would then pay off the balance in 24 months. Should Julian use the cash advance to purchase the motorcycle? a. No. Julian would be paying too much in interest to warrant using a cash advance. b. Yes. Even with the interest, the total cost of the motorcycle would be less than at the dealership. c. Yes. The interest rate on the cash advance is low. Julian will not have to pay much interest on the cash advance. d. No. The high interest rate on the cash advance would make the purchase of the motorcycle almost twice than the price at the dealership. Please select the best answer from the choices provided
Tim has four credit cards with the balances and APRs listed in the chart below. What will Tim's total monthly minimum credit card payment need to be to pay off all four credit cards in 24 months?Credit CardBalanceAPRA$1,260.0012%B$900.0018%C$1,290.009%D$1,200.0016% a.$118.24b.$162.62c.$163.00d.$221.93
Which of the following is not a benefit to using credit instead of cash? a. Using credit can help you build a good credit rating. b. Using credit allows you to make impulsive buys. c. Using credit makes it easier to track your spending than cash. d. Using credit offers a convenient source of funds in an emergency. Please select the best answer from the choices provided
Which of the following is not a disadvantage of using credit instead of cash?a.Credit cards increase the likelihood of impulse buying.b.Credit cards can be used to increase your credit score.c.Credit cards generally come with interest and other fees that cash does not.d.Credit cards require a good credit rating and responsible credit maintenance.
Listed below are the balances and annual percentage rates for Jimmy's credit cards. If Jimmy makes the same payment each month to pay off his entire credit card debt in the next 12 months, how much will he have paid in interest in the 12 month period?(Hint, find out how much interest Jimmy pays to each card over the 12 months seperately, and then add them together.) Credit Card Current Balance APR A $563.00 16% B $2,525.00 21% C $972.00 19% a. $321.83 b. $370.75 c. $449.24 d. $730.80 Please select the best answer from the choices provided
Sam is getting ready for a big date when he realizes that he has no money. His roommate, Bill, also has no money, but he has a credit card. Knowing that nobody will let Sam use Bill’s credit card, Sam asks Bill to pull out a cash advance for $120.00. Bill agrees under the condition that Sam is responsible for all interest that accrues on the cash advance which is a 30% interest rate, compounded monthly. The $120 cash advance is repaid in monthly installments over 5 years. How much should Bill ask Sam to pay in interest for the cash advance? a. $3.88 b. $112.80 c. $120.00 d. $232.80 Please select the best answer from the choices provided
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