PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 6, Problem 7FPE
Summary Introduction
To identify: The credit card representing the better deal for Person G in two cases
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Otis Hopkins recently graduated from college and is evaluating two credit cards. Card A has an annual fee of $75 and an interest rate of 9 percent. Card B has no annual fee and an interest rate of 16 percent. Assuming that Otis intends to carry no balance and to pay off his charges in full each month, which card represents the better deal? If Otis expected to carry a significant balance from one month to the next, which card would be better ? Explain.
A) What is the APR for purchases made using this credit card?
B) What is the maximum amount that Marcus can put on this credit card?
C) Did Marcus pay off the entire balance of his credit card last month?
D) Suppose Marcus pays the minimum payment due this month, what will his new balance be, after this payment is processed and assuming he makes no additional purchases?
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? (Round your answer to the nearest cent.)
31-day billing cycle
10/1 Previous balance
10/3 Credit
10/12 Charge: King Soopers
10/15 Payment
10/25 Charge: Delta
10/30 Charge: Holiday Fun
$1,177
$ 66 cr.
161
440 cr.
334
74
Amount owed
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Chapter 6 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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Similar questions
- 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 $ 1,173 $ 70 cr. 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers $ 157 $ 400 cr. $ 330 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun $ 70arrow_forwardIf you are trying to build credit by using a credit card, each time you make a purchase with the credit çard, 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 10/3 Credít 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Pun $1,173 70 cr. 157 400 cr. 330 70 Amount owedarrow_forward1. 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 67arrow_forward
- 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? Note: Round your answer to the nearest cent. 31-day billing cycle 10/1 10/3 Previous balance Credit $ 1,164 10/12 Charge: King Soopers $ 79 $ 148 Credit 10/15 Payment $ 310 Credit 10/25 Charge: Delta $ 321 10/30 Charge: Holiday Fun $ 61 Answer is complete but not entirely correct. Amount owed $ 1,097.56×arrow_forwardIf 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? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun Amount owed $84 cr. $143 $260 cr. $316 $56 Check my $ 1,159arrow_forwardIf 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? Note: Round your answer to the nearest cent. 10/1 10/3 10/12 10/15 10/25 10/30 Amount owed 31-day billing cycle Previous balance Credit Charge: King Soopers Payment Charge: Delta Charge: Holiday Fun $ 77 $ 150 $ 330 $ 323 $ 63 Credit Credit $ 1,166arrow_forward
- 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? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance $1,156 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Deltal 10/30 Charge: Holiday Fun $ 87 cr. 140 230 cr. 313 53 Amount owedarrow_forwardIf 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? (Round your answer to the nearest cent.) 31 day billing cycle 10/1 Previous balance $1,169 10/3 credit 10/12 Charge: King Soopers 10/15 Payment 10/25 charge: Delta 10/30 Charge: Holiday Fun $74 cr. 153 360 cr. 326 66 Amount owedarrow_forwardAlek has been a credit card user for several years. He always pays his monthly balance in full on time. He can therefore expect the credit card company to: a. offer him a higher credit line b. offer him a lower credit line c. remove his annual fees d. increase his annual fees e. waive charges for ATM withdrawals [ don't give chatgpt answer]arrow_forward
- Brandon has reached his credit card limit of $5000.00. Using an online calculator, Brandon determined that if he pays $180.00 per month, it will take him 39 months to pay off the credit card. Which of the following represents the total interest Brandon will pay when his debt is paid off? Please i really need this i submitted on my other account still did not get answer please make this fast.arrow_forwardIf 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…arrow_forwardYou 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.arrow_forward
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