- A is offered a credit card (CARD A) that has an APR of 12.99%. B is offered a card (CARD B) that has 10.99% but charges $79 annually. They both plan to carry a balance forward of about $120 each month. Which person is offered a better card? Show work.
- Your credit cards closed on the 15th of every month, your payment are due on the 1st. You have an APR of 16.99%.a) If you purchases a TV for $3500 on October 20th, how many interest free days will you have left?
b) When will you have to pay for the tv in full in order to avoid finance charges?
c) If you can pay only $250 per month, how long would it take for you to pay it off and how much interest would you end up paying for the TV?
- You currently have a credit card that charges 16.99% interest. You usually carry a balance of $200. You receive an offer for a new credit card with a teaser rate of 8.99% for the first 6 month…after that the rate goes up t0 22.99%.
a) What is the total annual interest on the current credit card?
b) What will be the interest in the first year after you switch?
C) Should you switch? why?
- Josh have a credit card that charges 18.99% on outstanding balances and 25% on cash advances. The closing date on the credit card is the first of each month. Last month he left a balance of $800 on his credit card. This month he took out a cash advance of $650 and made $1600 in purchases. He made a payment of $1800. What will the total of his new balance be on his next credit card statement, taking into account finance charges?