Consider the following monthly credit card statement:
What is the opening balance?
What is the total of the charges on the credit card for the month?
What is the total of the repayments for the month?
What is the closing balance for the month?
What is the credit limit?
What is the available credit?
When is the minimum payment due?
If the minimum payment due is 24\% of the balance at the end of the statement period, what is the minimum payment due?
What is the annual interest rate?
What is the daily interest rate to three decimal places? Assume there is 365 days in a year.
The table below shows the informations from a monthly credit card statement:
| \text{Statement begins} | 5 \text{ June } 2011 | |||
|---|---|---|---|---|
| \text{Statement Ends} | 4 \text{ July } 2011 | |||
| \text{Account Number} | 310035012023 | |||
| \text{Payment due date} | \text{4 Aug 2011} | |||
| \text{Min payment due} | ||||
| \text{Overdue} | \text{Opening Balance} | \text{New Charges} | \text{Payments/ Refunds} | \text{Closing Balance} |
| \$0.00 | \$1742.82 | |||
| \text{Dat} | \text{Transaction Details} | \text{Amount (\$)} | ||
| \text{8 June} | \text{Ecoholidays} | 855.27 | ||
| \text{12 June} | \text{FashionWear} | 179.21 | ||
| \text{13 June} | \text{Wages} | 989.12 | ||
| \text{17 June} | \text{Gifts Online} | 193.77 | ||
| \text{19 June} | \text{Electricity Austrlia} | 134.67 | ||
| \text{24 June} | \text{Edgecliff Council} | 175.46 | ||
| \text{27 June} | \text{Repayments} | 989.12 | ||
| \text{3 July} | \text{Pizza People} | 32.45 |
| Credit Limit | Annual Rate | Daily Rate |
|---|---|---|
| \$3000 | 16.425\% |
Find the following, assuming there are 365 days in a year:
Opening balance
Total charges for the month.
Total payments for the month.
Closing balance
Credit limit
Available credit
Annual interest rate, to three decimal places.
Daily interest rate, to three decimal places.
When is the minimum payment due?
If the minimum payment due is 18\% of the balance at the end of the statement period, find the minimum payment due.
What is the interest due if the balance is paid 21 days after the due date?
Explain why interest rates on credit cards are usually higher than those on longer term loans.
Calculate the closing balance on a credit card with opening balance \$1553, if purchases to the amount of \$891 and repayments to the amount of \$164 are made during the month. Assume the closing balance is before any interest.
The opening balance on a credit card is \$1160, and purchases of \$589 and repayments of \$946 are made during the month.
If the credit card company requires a minimum payment of 6\% of the closing balance, find the minimum payment required.
If the minimum repayment is made, as well as an annual credit card fee of \$30, what will the total repayment be?
A credit card is used to borrow \$800. Calculate the amount owed after 52 days if the interest rate is 5.4\% p.a. compounded daily.
Calculate the interest due on an outstanding credit card balance of \$730 for 11 days if the interest rate is 0.052\% per day.
Calculate the interest due on an outstanding credit card balance of \$800 for 21 days if the interest rate is 3\% per annum, compounded daily. Assume that there are 365 days per year.
In the past month, Amelia made purchases to the amount of \$364 and repayments to the amount of \$109 on her new credit card, which charges interest at 4\% p.a. compounded monthly.
What will be the closing balance before interest?
What will be the closing balance after interest?
If the credit card company requires a minimum payment of 6\% of the closing balance, what is the minimum payment Amelia will have to pay?
If Amelia pays the minimum amount, what is her balance owing?
Lucy purchased a \$107 cordless phone with her credit card on 6 January. Her credit card has no interest-free period and interest is charged at 0.066\% per day from the date of purchase. Lucy paid off her purchase and interest charge on 25 January.
How many days of interest did she accumulate on her debt?
How much did she pay for the cordless phone altogether?
How much interest was she charged?
Tony bought a wireless adapter, valued at \$136, with his credit card on 6 May. His credit card has no interest-free period and interest is charged at 13\% p.a. from the date of purchase. Tony paid off his purchase and interest charge on 13 June.
What was the equivalent daily interest rate charged by his credit card company? Write your answer as a percentage to four decimal places.
How much did it cost him to buy the a wireless adapter with his credit card?
How much interest did he accumulate?
Elizabeth paid \$126 for a dress with her credit card on 20 September. Her credit card has an interest-free period of 55 days and interest is charged at 0.042\% per day. Elizabeth paid off her purchase and interest charge on 15 December.
How many days did she accumulate interest on her debt? Assume this credit card charges no interest (if you pay within the interest-free period), or interest for every day since the purchase date (if you pay after the interest-free period).
How much did she pay for the dress altogether?
How much interest was she charged?
Robert bought a set of \$74 earphones with his credit card on 25 March. His credit card has an interest-free period of 55 days and interest is charged at 18\% p.a. Robert paid off his purchase and interest charge on 14 June. How much did he have to pay to clear his debt?
Victoria used her credit card to buy a camera, priced at \$2077, on 15 July. Her credit card has an interest-free period of 55 days and interest is charged at 0.049\% per day. Victoria paid off 800 of her debt on 15 August and the remainder on 23 October, 100 days after the date of purchase.
How much did she have to pay in total to clear her debt? You may assume that only the balance owing at the end of the interest-free period will accrue interest.
How much interest was she charged?
For spending above the credit limit, Luigi’s credit card company charges a fee of \$25, plus 0.069\% per day on the amount owing above the limit. The credit limit is \$2401 and Luigi uses his card to pay for a motorbike that costs \$3301. He pays off the cost of the motorbike 11 days after the date of purchase.
First find the amount of credit Luigi used above his limit.
Find the penalty fee that will be incurred.
Lachlan used his credit card to pay for a \$122 drawer on 5 July, a \$23 TV on 10 July, a \$62pair of socks on 13 July and a \$297 pair of glasses on 12 July. His credit card charges interest at 0.036\% per day from the date of purchase. Lachlan paid off his account in full on 25 August.
How much did Lachlan pay for the items all together?
Lachlan also had to pay a late fee of 5\% of the total repayment due. What is the value of the late fee?
How much did Lachlan pay in interest and fees?
Xanthe has a credit card that charges 22\% interest p.a. Using the card, she buys a new pair of hiking boots for \$250 on 1 October, a rainproof jacket for \$180 on 20 October and a backpack for \$75 on 25 November. She pays off her credit card on 10 December. The card has a 30 day interest-free period that is forfeited completely if the balance is not repaid before it.
How much interest will Xanthe accrue for these purchases?