For Five Days She Owed $253.49.For Three Days She Owed $615.11

Name:______Period:______

4.4 Credit Cards

1. Mr. Kim’s credit card was stolen while he was on vacation. He immediately reported it missing. The person who found it days later used it and charged $2,000 worth of merchandise. How much is Mr. Kim responsible for paying? Which act applies?

2. Mrs. Bauer’s daily balances for the past billing period are given below.

For five days she owed $253.49.For three days she owed $615.11

For nine days she owed $816.08For seven days she owed $770.00

For seven days she owed $878.25

Find Mrs. Bauer’s average daily balance.

3. Mrs. Collier’s credit card was stolen, and she did not realize it for several days. The thief charged a $440 watch while using it. According to the Truth-In-Lending Act, how much is Mrs. Collier responsible for paying?

4. Penny’s ending balance on her debit card last month was $845.56. This month he had $542 worth of purchases and $710 worth of deposits. What is her ending balance for the month?

5. If the APR on a credit card is 22.8%, what is the monthly interest rate?

6. The average daily balance for Andrew’s last credit card statement was $1,213.44, and he had to pay a finance charge. The APR is 20.4%. What is the monthly interest rate? What is the finance charge for the month?

7. Mrs. Cook’s credit card has an APR of 13.2%. She does not ever pay her balance off in full, so she always pays a finance charge. Her next billing cycle starts today. The billing period is 31 days long. She is planning to purchase $7,400 worth of new kitchen cabinets this month. She will use her tax refund to pay off her entire bill next month. When should she purchase the cabinets in order to pay the minimum amount in finance charges?

8. Brenna and David applied for the same credit card from the same bank. The bank checked both of their FICO scores. Brenna had an excellent credit rating , and David had a poor credit rating.

a. Brenna was given a card with an APR of 12.8%. What was her monthly percentage rate?

b. David was given a credit card with an APR of 16.9%. What was his monthly percentage rate?

c. If each of them had an average daily balance of $7,880, and had to pay a finance charge, how much more would David pay than Brenna?

9. Mr. Ray had these daily balances on his credit card for his last billing period. He did not pay the card in full the previous month, so he will have to pay a finance charge. The APR is 18.8%.

six days @ $341.22ten days @ $987.45

three days @ $2,122.33eleven days @ $2,310.10

a. What is the average daily balance?

b. What is the finance charge?

10. Tommy’s credit rating was lowered, and the credit card company raised his APR from 18% to 25.5%.

a. If his average daily balance this month is $8,237, what is the increase in this month’s finance charge?

b. If this amount is typical of Tommy’s average daily balance all year, how much would the rise in interest cost her in a typical year?