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 9% APR and the following transactions? Note: Round your answer to the nearest cent. 31-day billing cycle 10/1 10/3 Previous balance. Credit $1,169 $ 74 Credit 10/12 10/15 Charge: King Soopers $ 153 Payment $ 360 Credit 10/25 Charge: Delta $ 326 10/30 Charge: Holiday Fun $ 66 Amount owed

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 9% APR and the following transactions? Note: Round your answer to the nearest cent. 31-day billing cycle 10/1 10/3 Previous balance. Credit $1,169 $ 74 Credit 10/12 10/15 Charge: King Soopers $ 153 Payment $ 360 Credit 10/25 Charge: Delta $ 326 10/30 Charge: Holiday Fun $ 66 Amount owed

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter6: Using Credit

Section: Chapter Questions

Problem 7FPE

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1. 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
8. 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 cycle10/1 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 Amount owed $
f 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 12% APR and the following transactions? 31-day billing cycle 10/1 Previous balance $ 1,177 10/3 Credit $ 66 Credit 10/12 Charge: King Soopers $ 161 10/15 Payment $ 440 Credit 10/25 Charge: Delta $ 334 10/30 Charge: Holiday Fun $ 74 What is the amount owed?
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 $ 70
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 12% APR and the following transactions? 28-day billing cycle 1-October Previous balance $ 1,168 3-October Credit $ 75.00 12-October Charge: King Soopers $ 152.00 15-October Payment $ 350.00 25-October Charge: Delta $ 325.00 30-October Charge: Holiday Fun $ 65.00 APR 12% Required: Using the information above, complete the following table and questions Number of days of current balance Current balance Extension 2 $ 1,168.00 9 3 10 5 2 What is the total extension amount? What is the average daily balance? What is the total number of days of…
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.
Finding the time necessary until you pay off a loan is simple if you make equal payments each month. However, when paying off credit cards many individuals only make the minimum monthly payment, which is generally 1% to 2% of the balance or $25 whichever is greater. Locate the credit card calculator at fincalc website and work out this exercise: a) You currently owe $25,000 on a credit card with a 16% interest rate and a minimum payment of $25 or 1% of your balance. b) How soon will you pay off this debt if you make the minimum payment each month? c) How much total interest will you pay using that method? d) Calculate how soon you would pay off this debt if you paid $250 per monthly payment.
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. In a brief paragraph, justify your decision, including a description of all factors that would affect that decision.
Balance transfer credit cards Zoe Robinson has several credit cards, on which she is carrying a total current balance of $6,000. Her current cards charge her 12% per year. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Zoe would pay to transfer the balance. $ Describe the benefits and drawbacks of balance transfer cards.
Tamika Harms needs $18,000 to prepare her web-page design business for opening. Her bank will loan her the money at a banker's discount rate of 9.2% for 195 days. Find the face value of the note so that Ms. Harms will have the required $18.000. Use banker's interest of 360 days
Today the average undergraduate student is responsible for paying off a $3,500 balance on his/her credit card. Suppose the monthly interest rate is 1.75% (21% APR). How many months will it take to repay the $3,500 balance, assuming monthly payments of $100 are made and no additional expenses are charged to the credit card? [What is the APR on your personal credit card(s)?]
FIGURE OUT THE NEW STATEMENT BALANCE. You have a credit card that charges 18.99% on any outstanding balances, and 25% on cash advances, plus a fee of 3% of the amount of the cash advance. The closing date on the credit card is the 1st of each month. Last month you left a balance of $1800 on your credit card. This month you took out a cash advance of $450 and made $1600 in additional purchases. You made a payment of $950. What will the total of your new balance be on your next credit card statement, taking into account finance charges?