PRACTICE PROBLEMS FOR CREDIT
Question 1
Charlie's previous balance on his visa card was $1500. He made a payment of $800.
Using the adjusted balance method, calculate Charlie's finance charges for the month of
April if his visa card charges him an Annual Rate of Return of 12% (compounded
monthly).
Question 2
Scott's previous balance on his visa card was $45,000. However, he paid 15% of this
balance off this month. Using the Adjusted Balance Method calculate Scott's finance
charges for the month if his visa card charges him an Annual Percentage Rate of 18%
(compounded monthly).
Question 3
Brad's average daily balance on his visa card is $1407.25. His credit card charges him an
Annual Percentage Rate of 15%, compounded monthly. Using the Average Daily
Balance Method, Calculate Brad's finance charges for June.
Question 4
Marie's average daily balance for August was $8,900. Her credit card charges her an
Annual Percentage Rate of 19% compounded monthly. Using the Average Daily Balance
Method, calculate Marie's finance charges for August.
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 Spring '09
 B
 Annual Percentage Rate, Credit card, Visa card, Previous balance, Tandee

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