FINE PRINT: Schumer Box

First Name:

Last Name:

Class Period

• 2nd
• 3rd
• 5th

1. What is the APR (interest rate) on this card for Purchases made during the first six months that a cardholder has this card?

• 0%
• 15.24%
• 23.24%
• 25.24%

2. Jordan gets confused and uses his credit card to get $40 in cash from an ATM instead of using his debit card. Based on this agreement, what is the impact of this decision?

• There is no impact since credit card and debit card terms tend to be the same.
• A $10 cash advance fee will be charged ONLY.
• An A.P.R. of 25.24% will be applied on the $40 until it is paid back ONLY.
• A $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back.

3. Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year?

• She would have paid interest charges of $2,000.
• She would have paid interest charges of $20.
• The credit card company would have paid Louisa $20
• She would have paid interest charges of $200.

4. After the introductory period, all consumers who have this Platinum Card will...

• Pay the same A.P.R.
• Qualify for an A.P.R. based on their creditworthiness
• Pay the Penalty A.P.R. of 30.24%
• Be charged an Annual Fee

5. As you will see from this agreement, there are different A.P.R.s applied based on how the credit card is used. Which transaction type has the highest A.P.R.?

• A.P.R. triggered by a late payment
• A.P.R. applied on Purchases made during the Introductory Period
• A.P.R. applied to a Balance Transfer
• A.P.R. applied to a Cash Advance

6. Devon forgets to pay his credit card bill for three months. Which of the following statements is TRUE?

• A Late Payment fee will not be charged to his account.
• A Balance Transfer fee will be charged to his account.
• His A.P.R. (interest rate) will rise to 30.24% until he pays back the amount he owes.
• His A.P.R. (interest rate) will rise to 30.24% and stay there until he makes six consecutive minimum payments .

7. Tamara goes on a spring break trip with her school to visit historical sites in Italy. She purchases $200 of souvenirs while on the trip. She gets back to the U.S. and opens her credit card statement. What will be the balance in her account, assuming she had a zero balance prior to making these purchases and didn't make any other purchases?

• $0.00
• $200.00
• $206.00
• $6.00