17.4 Paying Bills

Front

What is a monthly payment?

Back

A monthly payment is a fixed amount of money that is paid each month to settle a debt or purchase over time.

Front

What is a processing fee?

Back

A processing fee is a charge added to a transaction, often for handling the payment.

Front

How do you calculate the total cost of an item when using a credit card?

Back

Total cost = Item price + Interest charges.

Front

What does it mean to buy now and pay later?

Back

It means to purchase an item immediately and defer payment to a later date, often using credit.

Front

What is the difference between paying with cash and using a credit card?

Back

Paying with cash means using physical money, while using a credit card means borrowing money to pay, which may incur interest.

Front

How do you find the monthly payment for an item bought on installment?

Back

Monthly payment = (Total cost + Fees) / Number of months.

Front

What is interest in terms of credit card payments?

Back

Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Front

What is an automatic payment?

Back

An automatic payment is a scheduled payment that is automatically deducted from a bank account or charged to a credit card.

Front

How do you calculate savings when paying with cash instead of credit?

Back

Savings = Interest charges if paid with credit - Total cost if paid with cash.

Front

What is the total amount paid when using a credit card with interest?

Back

Total amount = Item price + Interest charges.