3 3. Sally always applies for a credit card if the company gives agift with the card. Do you agree with Sally's decision? Explain.4. Christine is a fashion designer.She is buying $3000 worth of fabricto make samples for a show. Shewill pay off her balance 120 d afterthe grace period. She is comparingtwo no-fee credit cards.APRcreditlimitCard 1cashbackCard 117.99%Card 240001.5% onpurchasesCard 216.9%a) Christine will use the cash back to pay the interest.What interest would she pay on each card?$60001% onpurchases

A credit card is a type of credit facility being offered by a bank. It can be said to be a payment…

Answered: 3. Sally always applies for a credit…

3. Sally always applies for a credit card if the company gives a gift with the card. Do you agree with Sally's decision? Explain.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section: Chapter Questions

Problem 3FPC

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Concept explainers

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.

Question

3. Sally always applies for a credit card if the company gives a
gift with the card. Do you agree with Sally's decision? Explain.
4. Christine is a fashion designer.
She is buying $3000 worth of fabric
to make samples for a show. She
will pay off her balance 120 d after
the grace period. She is comparing
two no-fee credit cards.
APR
credit
limit
Card 1
cash
back
Card 1
17.99%
Card 2
4000
1.5% on
purchases
Card 2
16.9%
a) Christine will use the cash back to pay the interest.
What interest would she pay on each card?
$6000
1% on
purchases

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If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance $ 1,173 10/3 Credit $ 70 cr. 10/12 Charge: King Soopers $ 157 10/15 Payment $ 400 cr. 10/25 Charge: Delta $ 330 10/30 Charge: Holiday Fun $ 70