Question

#1.) Here is a sample credit card statemet. Use the CARD Statement to answer problems a- d. CARD Statement Account Number 1234 1234 1234 1234 O Statement Closing Date 11/06/08 Credit Line $2,100.00 Available Credit $1,576.80 TERESA TORRES 123 ANY STREET CITY CA 12345 o Account Summary Previous Balance - Credits - Payments + Purchases & Other Chgs - Cash Advances • FINANCE CHARGE - New Balance Payment Information O New Balance O Scheduled Minimum Payment O Scheduled Payment Due Date $523 20 $35.00 12/01/08 51 686 15 $0.00 $1,688.15 $523.20 $0.00 30.00 $523 20 vou Corresponding Rate Information WHY YOUR BALANCE PLAT ANY ACCORDING TO THE TERMS OF YOUR AGREEMENT NOTICE SEE REVERSE E POR IMPORTANT INFORMATION ABOUT YOUR ACCOUNT Daily ANNUAL FINANCE Average PERCENTAGE CHARGE Daily Type of Balance RATE RATE Balance PURCHASE(S) 19.80% 05424% 30.00 CASH ADVANCE(S) 21.80% 05972% $0.00 Composite ANNUAL PERCENTAGE RATE 21 ON Days in Bling Cycle 25 Transactions Trans Post Reference Number 10/08 10/08 X0000000000xxxxxxxxx 10/08 10/09 xccxx0000000000xxxxx Charges Description MERCHANT NAME PAYMENTS Payment Duter te Woman 12/01/08 Account Number 1234 1234 1234 1234 New Balance $523 20 Scheduled Minimum Payment $35.00 Scheduled Payment Due Date 12/01/08 Amount Enclosed $ PAYMENT ADDRESS 123 ANY STREET LOS ANGELES, CA TERESA TORRES 123 ANY STREET CITY, CA 125.08 S ODS

Answer 1

1) A). APR means "Annual Percentage Rate" for Purchase 19.50%

B). Previous Balance $1686.15, (-)Payments $$1688.15,(+) Purchase $523.20, (+) Finance Charges $0.00 = New Balance$523.20

C). Minimum Payment Due $35.00

D). Previous Balance $523.20,(-) Payments $35.00, (+)Purchase $0.00, (+) Finance Charges =488.20*(19.80/12)% = $8.05/-,(=) New Balance $496.26

2). A) Minimum Monthly Payments $3000*2%= $60/-

B). Finance Charges 21%/365=0.05753

C).

Finance Charges Previous Balance Payments Purchase Months New Balaance E-B*21/100*1/12 52.50 $ A. C-B*2% F-B+D+E-D B E00.00 $ 60.00 $ 2,992.50 59.85 $ $ $ 2,992.50 1 52.37 $ $ 2. 2,985.02 52.24$ $ 2,985.02 59.70 $ 2,977.56 3 2,977.56 59.55 $ 52.11$ 4 2,970.11 2,970.11 $ 59.40 $ 51.98 $ 5 2,962.69 n

D).

Finance Charges Months Previous Balance Payments Purchase New Balaance E-B*21/100*1/12 52.50 S c-B*2% F-B+D+E - D A B 3,000.00 60.00 $ 1 2,992.50 2,992.50 59.85 $ 2,985.02 $ 59.70 $ 52.37 $ $ 2,985.02 2 52.24$ $ 2,977.56 52.11 $ 51.98 $ 51.85 $ 51.72 $ 51.59 $ 2,977.56 $ 59.55 $ $ 4 2,970.11 59.40 $ 2,962.69 5 2,970.11 2,962.69 59.25 $ 2,955.28 $ 59.11$ 2,947.89 58.96 $ $ 6 2,955.28 $ 7 2,947.89 $ 2,940.52 51,46 $ $ 2,940.52 58.81 $ $ 2,933.17 $ 2,933.17 $ 58.66 $ 51.33 S 10 2,925.84 2,925.84 $ 58.52 $ 2,918.52 $ 58.37 $ 2,911.23 $ 58.22 $ 2,903.95 58.08 $ 2,896.69 $ 57.93 $ 2,889.45 57.79 $ 2,882.22 $ 57.64 $ 51.20 $ $ $ 11 2,918.52 51.07 $ $ 12. 2,911.23 50.95 $ $ $ 13 2,903.95 $ 50.82 S 14 2,896.69 50.69 $ 50.57$ $ $ 15 2,889.45 $ 16 2,882.22 50.44 $ $ $ 17 2,875.02 2,875.02 $ 57.50 $ 2,867.83 $ 57.36 $ 2,860.66 $ 57.21 $ 57.07 $ $ 50.31 $ 50.19 $ 18 2,867.83 $ 19 2,860.66 $ 50.06 $ 49.94 $ 20 2,853.51 $ 21 2,853.51 2,846.38 49.81 $ 2,846.38 56.93 $ 22 2,839.26 49.69 $ $ 2,839.26 56.79 $ $ 23 2,832.16 49.56 $ 2,832.16 56.64 $ 24 2,825.08

Notes: Previous Balance is Last Month New Balance