Finance Charges Answers

Jennifer has a credit card with an APR of 10.22% and a billing cycle of 30 days. The following table shows Jennifer’s credit card transactions in the month of January.DateAmount ($)Transaction1/1807.94Beginning balance1/741.81Purchase1/853.88Payment1/1675.00Purchase1/2018.65Purchase1/2625.00PaymentHow much greater will Jennifer’s January finance charge be if the finance charge is calculated using the previous balance method than if it is calculated using the adjusted balance method?

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Roger has a credit card with an APR of 19.40% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of June.DateAmount ($)Transaction6/1265.40Beginning balance6/690.00Payment6/1643.33Purchase6/2237.71PurchaseIf Roger’s finance charge for June is $3.56, which method of calculating the finance charge does Roger’s credit card company use?

Elizabeth’s credit card computes her finance charges using the previous balance method and a 30-day billing cycle. The table below shows Elizabeth’s credit card transactions in July.DateAmount ($)Transaction7/1969.26Beginning balance7/345.00Payment7/1067.48Purchase7/1220.00Payment7/2885.00PaymentIf Elizabeth has an APR of 14.61%, how much will her July finance charge be?

Jason’s credit card has an APR of 17.02% and a 30-day billling cycle. The following table details Jason’s transactions with that card in the month of June.DateAmount ($)Transaction6/1746.28Beginning balance6/9140.00Payment6/1528.76Payment6/1869.49PurchaseBetween the adjusted balance method and the daily balance method, which method of computing Jason’s June finance charge will result in a greater finance charge, and how much greater will it be?

Hannah has a credit card with an APR of 11.90% and a billing cycle of 30 days. The following table shows Hannah’s transactions in the month of April. DateAmount ($)Transaction4/1322.95Beginning balance4/1019.87Purchase4/1450.00Payment4/1971.21PurchaseIf Hannah’s credit card company calculates finance charges using the daily balance method, what will her April finance charge be?

David has a credit card with an APR of 13.59% and a 30-day billing cycle. The table below details David’s transactions with that credit card in the month of November. Date Amount ($) Transaction 11/1 1,998.11 Beginning balance 11/5 43.86 Purchase 11/16 225.00 Payment 11/23 61.21 Purchase Between the previous balance method and the daily balance method, which method of calculating David’s November finance charge will result in a greater finance charge, and how much greater will it be?

Michael has a credit card with an APR of 15.33%. It computes finance charges using the daily balance method and a 30-day billing cycle. On April 1st, Michael had a balance of $822.05. Sometime in April, he made a purchase of $77.19. This was the only purchase he made on this card in April, and he made no payments. If Michael’s finance charge for April was $10.71, on which day did he make the purchase?

Christopher has a credit card with an APR of 13.13%. The card uses the adjusted balance method to calculate finance charges. The following table details Christopher’s transactions with his credit card in the month of December.DateAmount ($)Transaction12/1424.86Beginning balance12/355.25Payment12/578.10Purchase12/1420.00Payment12/1627.97Purchase12/228.16Purchase12/2946.07PurchaseIf Christopher is on a 30-day billing cycle, what will his new beginning balance be after December?

Antonio's credit card has an APR of 16.65%, and it calculates his finance charge by using the daily balance method and a 30-day billing cycle. On June 1st, Antonio had a balance of $811.67. During the month of June, he made a payment of $110.16 and a purchase of $84.04. How much greater will his June finance charge be if the purchase occurred on June 5th and the payment occurred on June 23rd than it would be if the payment occurred on June 5th and the purchase occurred on June 23rd?