Topic Test Answers

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

What is the difference between a credit score and a credit rating?a.A credit score and a credit rating are the same thing.b.A credit score is a measure of how much debt you have, and a credit rating is a measure of your creditworthiness.c.A credit score is a number indicating your creditworthiness, and a credit rating is a measurement of how your credit score compares to others.d.A credit score is a measurement of your creditworthiness from one major credit bureau, and a credit rating is a measurement of your creditworthiness from all three major credit bureaus.

Ruth’s credit card has an APR of 10.91%, and it computes finance charges using the previous balance method on a 30-day billing cycle. During the April billing cycle, she made a $45.17 payment on April 10th and a $88.34 purchase on April 17th. Her total at the start of May was $847.64. What was her balance at the beginning of April? a. $890.91 b. $797.16 c. $796.87 d. $804.47 Please select the best answer from the choices provided

Which of these is not a method used to calculate finance charges? a. adjusted balance b. average daily balance c. usual balance d. previous balance Please select the best answer from the choices provided.

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