Unit 6 Review

Front

What is the formula to calculate the new balance on a credit card?

Back

New Balance = Previous Balance - Payments + New Purchases + Finance Charges.

Tags

CCSS.7.NS.A.3

Front

Define 'Finance Charge'.

Back

A finance charge is the cost of borrowing money, typically expressed as a percentage of the outstanding balance.

Front

What is an 'Account Statement'?

Back

An account statement lists all of the items purchased and other transactions on a credit account for a specific period.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What does 'Minimum Payment' mean?

Back

The least amount that must be paid on a credit card each month to avoid penalties.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

Calculate the new balance: Previous balance $716.45; Payments $150 and $75; New purchases $29.98, $129.90, and $10.46; Finance charge $12.54.

Back

New Balance = $716.45 - ($150 + $75) + ($29.98 + $129.90 + $10.46) + $12.54 = $674.33.

Tags

CCSS.7.NS.A.3

Front

Calculate the new balance: Previous balance $42.11; Finance charge $0.92; New purchases $111.50; Payment $50.00.

Back

New Balance = $42.11 + $0.92 + $111.50 - $50.00 = $4.53.

Tags

CCSS.7.NS.A.3

Front

Calculate the new balance: Previous balance $344.56; Payment $250.00; Charges $123.45, $21.56, and $45.90; No finance charge.

Back

New Balance = $344.56 - $250.00 + ($123.45 + $21.56 + $45.90) = $285.47.

Tags

CCSS.7.NS.A.3

Front

What is 'APR'?

Back

APR stands for Annual Percentage Rate, which is the yearly interest rate charged on borrowed money.

Tags

CCSS.7.RP.A.3

Front

What is a 'Credit Limit'?

Back

A credit limit is the maximum amount of credit that a financial institution extends to a client.

Front

What is the difference between 'Payments' and 'New Purchases'?

Back

Payments reduce the balance owed, while new purchases increase the balance owed.

Tags

CCSS.7.NS.A.1A