1. Which of the following is an advantage of using credit cards? (Points : 1)
Credit card accounts charge monthly interest.
It is very easy to charge more than you can pay off each month.
If you pay late, you will be charged a late fee.
They are convenient.
2. The amount left when you subtract last month's payment from last month's balance on a credit card statement is the (Points : 1)
APR.
unpaid balance.
new balance.
minimum payment.
3. The percentage charged each month on purchases charged to the credit card account is called the (Points : 1)
periodic rate
new balance
unpaid balance
minimum payment
4. Use this information for questions 4-6.
On Kathleen's credit card statement, her last balance was $89.70. She made a payment of $20, had new charges totalling $32.11, and pays a periodic rate of 1.23 percent. What is her unpaid balance?
(Points : 1)
$102.91
$77.59
$101.81
$69.70
5. What was Kathleen's finance charge? (Points : 1)
$1.10
$0.86
$1.25
$1.23
6. What is Kathleen's new balance? (Points : 1)
$102.67
$122.67
$82.67
$92.67
7. Jack's credit card statement showed these items:
Last Balance Payments Finance Rate New Charges
$95.85 $45.00 1.5% $345.90
What is Jack's new balance? (Points : 1)
$494.05
$402.70
$397.51
$448.38
1: They're Convenient
2: Unpaid Balance
3: Periodic Rate
4: $69.70
5: $0.86
6: $102.67
7: $397.51
8: $2.96
9: $51.83
10: $25
(I hate K12 quizzes, but I hope this helps someone!)
this is a 50 question exam! he is not cheating!
1. The correct answer is "They are convenient." To determine this, we can analyze the advantages listed for each option. Regarding the other options:
- Credit card accounts charge monthly interest: This is not an advantage since it means you have to pay interest on your balance.
- It is very easy to charge more than you can pay off each month: This is also not an advantage as it can lead to debt and accumulation of interest.
- If you pay late, you will be charged a late fee: This is a disadvantage, not an advantage.
2. The correct answer is "unpaid balance." To determine this, we need to recognize that the given options relate to the amount left after subtracting last month's payment from last month's balance on a credit card statement. The APR refers to the annual percentage rate, which is not relevant in this context. The new balance is the total balance after accounting for new charges and payments, which is also not relevant. The minimum payment is the minimum amount you need to pay each month, which is not relevant to the question.
3. The correct answer is "periodic rate." To determine this, we can go through the given options and eliminate the ones that do not fit the definition. The new balance refers to the updated total balance, the unpaid balance refers to the remaining balance from the previous month, and the minimum payment is the minimum amount you need to pay each month. The periodic rate is the percentage charged each month on purchases.
4. To calculate Kathleen's unpaid balance, we need to subtract her payment from her last balance and then add the new charges.
$89.70 (last balance) - $20 (payment) + $32.11 (new charges) = $101.81
Therefore, her unpaid balance is $101.81.
5. To find Kathleen's finance charge, we need to multiply her unpaid balance by the periodic rate.
$101.81 (unpaid balance) * 1.23% (periodic rate) = $1.25
Therefore, her finance charge is $1.25.
6. To calculate Kathleen's new balance, we need to add her unpaid balance and her finance charge to her last balance.
$89.70 (last balance) + $101.81 (unpaid balance) + $1.25 (finance charge) = $192.76
Therefore, her new balance is $192.76.
7. To calculate Jack's new balance, we need to subtract his payments from his last balance, then add the finance charges and new charges.
$95.85 (last balance) - $45.00 (payments) + ($95.85 * 1.5% (finance rate)) + $345.90 (new charges) = $494.05
Therefore, Jack's new balance is $494.05.