Bill was going to purchase a new mountain bike with his credit card, which he thought had an APR of 13%. His plan was to keep his payments around $75 per month for 24 months. He then found out that his credit card actually had an APR of 17%. Which of the following would not allow Bill to purchase a bike while keeping the same monthly payment?a.Purchase a bike that costs less.b.Wait for the bike he wants to go on sale for a cheaper price.c.Purchase the bike in a part of town with a higher sales tax rate.d.Increase the number of months he wants to use to pay off the balance.
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
Which of the following is not a disadvantage to cash advances on a credit card?a.Cash advances are similar to loans in that they need to be paid back with interest.b.Cash advances require a lot of paperwork and are generally difficult to get.c.Cash advances are often the last thing to be paid when paying off your credit card.d.Cash advances often come with an interest rate much higher than your credit card.
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.
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.
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
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.$221.93
Tom is in dire need of a new washing machine. He knows what model he would like to get, but doesn't have the cash to pay for it. He plans to get a line of credit (credit card) at the store when he purchases his new washer. He found four different stores that carry the same washing machine for different prices. The lines of credit they offer also come with different APRs. Tom's primary goal is to minimize his monthly payment as he pays the washing machine off over the next 18 months. From which of the four stores should Tom purchase his washing machine? StorePrice ($)Credit Card APRBob's Nuts and Bolts$450.0021%Steve's Scratch and Dent$405.0022%Wally's Washing Machines$432.0019%Al's Appliances$475.0016% a.Bob's Nuts and Boltsb.Steve's Scratch and Dentc.Wally's Washing Machinesd.Al's Appliances
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
Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a $200 cash advance on her credit card at an interest rate of 32%.If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?a.$5.33b.$32.00c.$173.33d.$205.33
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