MCP Test 9 Retake

The percentage form of 0.034 is

Which Excel formula computes the periodic interest rate for the credit card customer after the introductory one-year period has elapsed? Assume no change in the market based on the Prime Rate.

• =0.0899/12
• =0.1299/12
• =0.1499/12

If Roberta had the credit card for more than a year, what is the amount of interest charged on an average balance of $1,560?

What is the minimum interest charge?

What APR will you pay for bank cash advances?

• 25.24%
• 0%
• 13.24%
• 16.24%
• 23.24%

Holly has a credit card with an APR of 14.99% She did not pay her entire bill last month so she will be charged a finance charge this month. If her balance was $2,700, how much will her finance charge be this month? [Hint: find the periodic rate first.]

• $33.73
• $40.47
• $404.73
• $3372.75

Debra has a very poor credit score. According to the credit card disclosure, what APR will she be charged?

• 11.99%
• 21.99%
• 23.99%
• 25.99%

The summer before Ethan's senior year in high school, he made $1,500 mowing lawns. His parents promise to pay him 2% simple interest on his earnings, as long as he doesn't spend any of the money. How much will Ethan have if he saves his money for 1 year?

Gina takes out a student loan to help pay for educational expenses this upcoming semester. Using the formula for simple interest, how much money will Gina owe on the loan if she borrows $2,000 at 12% for one year?

A local investment firm has an account earning 6% APR. Assume annual compounding and that the account will continue to perform at the same rate. If you invest $1,600 in this account for 5 years, what will be your account balance? Round to the nearest penny (hundredth)