6.10.0: Exercises
- Page ID
- 171722
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Name three main criteria to choose a credit card by.
Which type of credit card is most convenient to use?
Which type of credit card comes with no preset spending limit?
How much interest does a credit card holder pay if they pay off the balance every month?
Which type of credit card comes with the highest annual fees?
Use the following credit card statement for the following exercises.
What is the minimum payment due?
How long will it take to pay the balance if the minimum only is paid and no new purchases are made?
How much interest was charged in this billing cycle?
What is the balance on the credit card?
What is the credit limit on this card?
What is the late payment fee for this card?
When is the payment due?
The billing cycle for a credit card goes from April 1 to April 30. The balance at the start of the billing cycle is $1,598.00. The list of transactions on the card is below. Find the average daily balance for the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 1-Apr | Billing Date Balance | $1,598.00 |
| 9-Apr | Gasoline | $51.24 |
| 9-Apr | Food | $105.56 |
| 9-Apr | Payment | $675.00 |
| 13-Apr | Camping Trip | $229.75 |
| 21-Apr | Gasoline | $38.45 |
| 22-Apr | Gifts | $148.88 |
| 22-Apr | Food | $49.75 |
| 30-Apr | Gym Payment | $74.99 |
The billing cycle for a credit card goes from September 1 to September 30. The balance at the start of the billing cycle is $384.25. The list of transactions on the card is below. Find the average daily balance for the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 1-Sep | Billing Date Balance | $384.25 |
| 2-Sep | Food | $94.54 |
| 5-Sep | Gasoline | $25.65 |
| 5-Sep | Internet | $39.99 |
| 6-Sep | Payment | $380.00 |
| 9-Sep | Insurance | $174.52 |
| 16-Sep | Food | $83.54 |
| 16-Sep | Day Care | $350.00 |
| 20-Sep | Tires | $2,337.56 |
| 21-Sep | Child Clothing | $27.65 |
| 21-Sep | Gasoline | $31.00 |
| 28-Sep | Television | $299.95 |
The billing cycle for a credit card goes from October 10 to November 9. The balance at the start of the billing cycle is $930.50. The list of transactions on the card is below. Find the average daily balance for the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 10-Oct | Billing Date Balance | $930.50 |
| 11-Oct | Clothing | $350.00 |
| 14-Oct | Computer | $865.84 |
| 17-Oct | Food | $106.51 |
| 21-Oct | Payment | $700.00 |
| 21-Oct | Restaurant | $134.52 |
| 21-Oct | Hotel | $387.56 |
| 30-Oct | Hockey Game | $76.47 |
| 5-Nov | Memorabilia | $150.00 |
| 5-Nov | Restaurant | $94.45 |
| 6-Nov | Gasoline | $49.19 |
The billing cycle for a credit card goes from February 15 to March 16 during a non-leap year. The balance at the start of the billing cycle is $292.82. The list of transactions on the card is below. Find the average daily balance for the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 15-Feb | Billing Date Balance | $292.82 |
| 21-Feb | Food | $64.57 |
| 22-Feb | Gasoline | $31.50 |
| 22-Feb | Food | $71.94 |
| 28-Feb | Insurance | $133.25 |
| 28-Feb | Payment | $100.00 |
| 3-Mar | Gasoline | $26.61 |
| 12-Mar | School Trip | $300.00 |
In the following exercises, compute the interest charged for the credit card based on the given average daily balance (ABD), annual interest rate, and number of days in the billing cycle.
ADB = $350.00, annual interest rate 14.9%, billing cycle of 30 days.
ADB = $4,312.00, annual interest rate 9.99%, billing cycle of 31 days.
ADB = $563.38, annual interest rate 17.9%, billing cycle of 30 days.
ADB = $1,043.53, annual interest rate 11.9%, billing cycle of 31 days.
In the following exercises, find the balance on the credit card with the given interest charge and balance before interest was charged. The cards were not paid off previously.
Balance before interest is $1630.00, interest charge is $16.48.
Balance before interest is $621.00, interest charge is $7.81.
Balance before interest is $1,380.00, interest charge is $15.35
Balance before interest is $2,774.00, interest charge is $44.05.
Alsaggr’s credit card charges 11.9% annual interest. His current billing period is from April 1 to April 30. The balance on April 1 was $1,598.00. Use Alsaggr’s following transactions to determine his balance due at the end of the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 1-Apr | Billing Date Balance | $1,598.00 |
| 9-Apr | Gasoline | $51.24 |
| 9-Apr | Food | $105.56 |
| 9-Apr | Payment | $675.00 |
| 13-Apr | Camping Trip | $229.75 |
| 21-Apr | Gasoline | $38.45 |
| 22-Apr | Gifts | $148.88 |
| 22-Apr | Food | $49.75 |
| 30-Apr | Gym Payment | $74.99 |
Marisa’s credit card charges 8.9% annual interest. Her current billing period is from September 1 to September 30. The balance on September 1 was $384.25. Use Marisa’s following transactions to determine her balance due at the end of the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 1-Sep | Billing Date Balance | $384.25 |
| 2-Sep | Food | $94.54 |
| 5-Sep | Gasoline | $25.65 |
| 5-Sep | Internet | $39.99 |
| 9-Sep | Insurance | $174.52 |
| 16-Sep | Food | $83.54 |
| 16-Sep | Day Care | $350.00 |
| 20-Sep | Tires | $2,337.56 |
| 21-Sep | Child Clothing | $27.65 |
| 21-Sep | Gasoline | $31.00 |
| 28-Sep | Television | $299.95 |
Haley’s credit card charges 18.9% annual interest. Her current billing period is from October 10 to November 9. The balance on October 10 was $930.50. Use Haley’s following transactions to determine her balance due at the end of the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 10-Oct | Billing Date Balance | $930.50 |
| 11-Oct | Clothing | $350.00 |
| 14-Oct | Computer | $865.84 |
| 17-Oct | Food | $106.51 |
| 21-Oct | Payment | $700.00 |
| 21-Oct | Restaurant | $134.52 |
| 21-Oct | Hotel | $387.56 |
| 30-Oct | Hockey Game | $76.47 |
| 5-Nov | Memorabilia | $150.00 |
| 5-Nov | Restaurant | $94.45 |
| 6-Nov | Gasoline | $49.19 |
Pavly’s credit card charges 10.9% annual interest. His current billing period is from February 15 to March 16 in a non-leap year. The balance on February 15 was $292.82. Use Pavly’s following transactions to determine his balance due at the end of the billing cycle.
| Date | Activity | Amount |
|---|---|---|
| 15-Feb | Billing Date Balance | $292.82 |
| 21-Feb | Food | $64.57 |
| 22-Feb | Gasoline | $31.50 |
| 22-Feb | Food | $71.94 |
| 28-Feb | Insurance | $133.25 |
| 28-Feb | Payment | $100.00 |
| 3-Mar | Gasoline | $26.61 |
| 12-Mar | School Trip | $300.00 |