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- Which of the following is true about credit card finance? a.All the options are wrong b.Credit card comes without a credit limit c.Provides interest free credit for 12 months d.Interest rates are high on credit cardCredit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?Credit cards allow people to purchase things that they can almost afford. Things are bought with the feeling that they will soon be paid for. However they also fuel the temptation to buy things that perhaps should have been resisted. This is especially true with the type of credit card that allows a consumer to spend freely for 6 months without being hit by interest. If the account can be zeroed out in that time, the card has given consumer an interest free loan. But it is possible that the consumer has spent up to the limit of the card, say $10,000 and must now pay this off at 24% APR.a) What is the monthly interest rate corresponding to 24% APR? divided by 12.b) How much interest is owed after 1 month on the $10,000? multiplied by the monthly interest rate.
- Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,300, 340-day note at 2% to your bank at a discount rate of 5.0% on day 200. What are your proceeds?No Plagiarism Please! Enter your answer and show all the steps that you use to solve this problem in the space provided. You have two credit cards. Card Name (APR %) Existing Balance Credit Limit Murk (5.6%) $675.49 $1,500.00 Mini (9.85%) $902.43 $1,000.00 What is your debt ratio? If you budget $375 to payoff your credit card debt and you payoff the highest interest card first while maintaining the interest accrued on the other card, how many months does it take you to pay it off and how much is the payment each time excluding the last payment? Be sure to include the following in your response: the answer to the original question the mathematical steps for solving the problem demonstrating mathematical reasoningYour FICO score is a commonly used measure of credit risk (see www.myfico. com). A score of 850 is the best (highest) score possible. Thirty-five percent of the FICO score is based on payment history for credit cards, car loans, home mortgages, and so on. Suppose your current FICO score is 720 and you have just missed a credit card payment due date and have incurred a late-payment fee! If your FICO score will drop 10% in the] “payment history” category because of the late payment on your credit card, what is your new FICO score?
- Your FICO score is a commonly used measure of credit risk (see www myfico.com). A score of 850 is the best (highest) score possible. Thirty-five percent of the FICO score is based on payment history for credit cards, car loans, home mortgages, and so on. Suppose your current FICO score is 720 and you have just missed a credit card payment due date and have incurred a late payment fee! If your FICO score will drop 10% in the “payment history” category because of the late payment on your credit card, what is your new FICO score?If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance $ 1,173 10/3 Credit $ 70 cr. 10/12 Charge: King Soopers $ 157 10/15 Payment $ 400 cr. 10/25 Charge: Delta $ 330 10/30 Charge: Holiday Fun $ 701. If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Lizzie is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance $ 1,170 10/3 Credit $ 73 cr. 10/12 Charge: King Soopers 154 10/15 Payment 370 cr. 10/25 Charge: Delta 327 10/30 Charge: Holiday Fun 67
- I need help solving the problem below in excel You can put your money in an account that earns 10.0% compounded annually or in a bank account that earns 9.75%, compounded daily? Which account should you choose?You owe $2,000 on a credit card that charges 20% interest. You have $2,200 in your savings account that earns 1.69% interest. Your savings account charges $14.50 a month if you keep a balance of less than $1,500 a month. Compare the amount of interest for both to decide what you should do about paying the credit card bill. Consider all factors in the decision. Show your for any calculations you may completed.Let's say you showed your friend Cardi all these calculations, and she went, "Man, this is screwed up! Credit cards are a racket!" (Yes, Cardi, they are - if you don't pay your balance in full every month, that is.) But it's not all bad news, you tell Cardi. There is something she can do in order to reduce both her cost of borrowing and the length of time she'll be in debt. What can she do? (check all answers that apply) a. Ask her credit card company to shorten the duration of the loan. b. Make her payments earlier in the month rather than later. c. Transfer the balance to a lower interest card with another bank. d. Complain to the Consumer Financial Protection Bureau. e. Pay more than $400 every month. f. Ask her credit card company to lower the 29% interest rate. g. Occasionally make additional payments to the account.