Name__________________________
Hour______________________
CREDIT CARD TEST 3
1.) Dan D. Lyons made $570 in purchases on his credit card in November, and
made no payments on his November statement. One month later he receives his
December statement. If his credit card company charges $14.07 in interest, what
is his interest rate?
2.) Ginger Vitus has a previous balance of $300. If she made a $75 payment,
purchased $120 worth of stuff and her new balance is $400, what is the amount
of the interest?
.
3.) Gladys C. Hugh made $740 in purchases on her card in June. She does not
make any payments on her June statement. If her credit card company charged
her $19.55 in interest, what is her interest rate?
4.) Dr. Payne shows a previous balance of $1300. He has interest charges totaling
$68.50. He made a payment of $905, and his new balance is $910.00. How much
did he make in new purchases?
5.) Hy Lowe was charged $190 in interest on his credit at a rate of 31.5%. What is
the balance on his card?
6.) A.) Jim Shorts shows a previous balance of $1090 on his Master . . . . Card. He
has interest charges totaling $124. He made a payment of $620, and purchased a
bunch of unnecessary junk totaling $500. Calculate his new balance.
B.) Jim’s minimum monthly payment is 5% of his closing balance or $40
whichever is greatest. Using his new balance of ____________ calculate
his minimum monthly payment.
7.) Calculating credit Card statements
Bank: Providian Sapphire Rewards Card
APR: 47.9%
Balance: $6,440
Calculation Method: Average Daily Balance
Stats:
Name: Ima Broke
35 years old
Ph.D in Spendology
Car loans, home equity loan, massive student
loans
Using credit card to pay for her car payment,
utility bills, and morning latte.
Currently studying how many swipes a credit card can take before it
is unrecognizable.
Goal: Calculate credit card bill for this next month
Balance carried over from last month $6,440
Electric Cereal Box Opener, $90 on the 6th.
Rims for car (Ford Escort), $370 on the 14th.
Big screen TV, $1500 charge on the 20th.
Burger King, $15 on the 25th
Paying for your trip to Burger King for the next 39 years . . .
Priceless
Average Daily Balance:
Total Balance:
Daily Periodic Rate:
Interest/Finance Charge:
New Balance:
Total Payment (4%):
Principal Payment:
Day
Month
Geometric Mean
8.) Joe Kerr is invested in Fisher Fund Triple a (a mutual fund that invests in global
stocks) that has had the following annual returns:
2006
2007
2008
2009
9.5%
16.5%
-1.4%
19.9%
What is Joe’s annualized return rate?
9.) Joy Rider is invested in Edward Jones QAS (a mutual fund that invests in high
growth potential companies) that has had the following annual returns:
2003
2004
2005
2006
2007
2008
20.60%
18.9%
-2.7%
13.9%
-.50%
8.7%
What is the Joy’s annualized return rate?
10.)
Laura Lynn Hardy is invested in CC3 Municipal Bond Fund (a mutual
fund that invests in city bonds) that has had the following annual returns:
a.
b.
c.
d.
-10.2%
19.6%
10.04%
-.10%
What is Laura’s annualized return rate?
Show work:
Calculate how much she will have if she started with $2000 (actual
percentage)
Calculate how much she will have by using the annualized rate.
11.)
Explain in detail what happens when you try to close a
credit card account.
12.)
If you carry over a balance from month to month on a
credit card you are known as a ________________________.
13.)
If you pay off your balance every month you are known
as a ___________________________.
14.)
__________________ is the most marketed product in
the world.
15.)
Define “Kiddie Branding” as it pertains to credit cards.
16.)
What is an “Universal Default”?
17.)
Name two products that Visa sells.
18.)
Why do people spend more when they pay with plastic?
I=PRT
19.)
If the principal balance on a credit card is $309 and the rate is
21.9%, how much interest will be charged in one month?
20.)
If the interest charged for one month is $15.50, and the rate is
19%, what is the principal balance?
21.)
If the interest charged for one month is 9.31, and the principal is
$442, what is the rate that is being charged?
Scientific Notation
22.)
Write 4,678,567,000 in scientific notation
23.)
Write .00000002 in scientific notation.
24.)
Write 8,708 in “e” notation.
25.)
Write .09 in “e” notation
26.)
Write 3 X 107 in standard form.
27.)
Write 5.875 X 10-2 in standard form.
Extra Credit
1.) If you have the following returns, what is the annualized
return?
1999 105%
2000 137%
2001 185%
28.) Credit Card Tricks
_____________________: A fee charged to your account for
not using it. It Kinda takes away the incentive to only
use a credit card, “for emergencies only”.
_____________________: A fee assessed to your account if you
pay off the balance early.
_____________________: Tempting you with low rates like
3.9%, 1.99%, or even 0%
_________________________: This contains legal info like: Annual fee if
applicable, other APRs (balance transfer, cash advances, default APRs), grace period,
finance calculation method, and other transaction fees (balance transfers, late payments,
exceeding credit limit fee, cash advances).
_____________________: Sending you a notification that you
are qualified to receive a very low rate only to find out
after sending in the application that your rate is much
higher because your FICO score is not quite good enough.
______________________: Instead of using a month to find
your average daily balance they use two months.
Note: It seems good at first but in the long run you are paying
much more because you don’t get credit for making a payment.
28.)
List three things debt collectors (whether from credit card
companies or debt agencies) do that breaks federal law.
29.)
What is the most marketed product in the world?
30.)
What interest rates can credit card companies charge?
31.)
If someone has a credit card balance of $2000 and defaults the
balance will balloon to $8000 due to increased interest and fees
galore. The credit card company will win whether that person pays or
not. Explain.
32.)
Every time a debit card or credit card is used the issuing bank
gets a commission. What is the name for this commission?
33.)
What can merchants in Michigan and 39 other states do with
regards to the “commission” from question 32?
34.)
Name three aspects of the Credit Card Act of 2009.
Extra Credit Type Question
Joe Gettensmart (age 18) , who eats fast food EVERYDAY, decides to eat
healthy and saves up a mere $26 per week which he deposits into a Roth
account at the end of each month. How much will he have when he is 48?
58?