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 12% APR and the following transactions?**Note: Round your answer to the nearest cent.**| **31-day billing cycle** | ||--------------------------|----------------|| 10/1 | Previous balance | $1,166 || 10/3 | Credit | $77 Credit || 10/12 | Charge: King Soopers | $150 || 10/15 | Payment | $330 Credit || 10/25 | Charge: Delta | $323 || 10/30 | Charge: Holiday Fun | $63 |**Amount owed:** [Box for answer input]**Instructions:**Calculate how much Kathy owes at the end of the billing cycle, considering all charges, credits, and the 12% APR. Remember to round your answer to the nearest cent.

Answered: If you are trying to build credit by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alien Jackson has $2,000 on her credit card which charges a 23% interest rate. If she wants to pay off the credit card in 4 years, how much will she need to pay each month (assuming she don't charge anything new to the card)?
Camila Martinez has several credit cards, on which she is carrying a total current balance of $6,500. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Camila would pay to transfer the balance. $ Describe the benefits and drawbacks of balance transfer cards.
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Mary uses her credit card frequently. Which of the following is the best strategy to minimize the amount of interest paid when using a credit card? Pay off the credit card balance monthly. ○ Search for and use a credit card with the lowest APR. Search for and use a credit card that compounds interest monthly. Pay more than the minimum monthly balance each month.
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? Note: Round your answer to the nearest cent. 31-day billing cycle 10/1 10/3 Previous balance Credit $ 1,164 10/12 Charge: King Soopers $ 79 $ 148 Credit 10/15 Payment $ 310 Credit 10/25 Charge: Delta $ 321 10/30 Charge: Holiday Fun $ 61 Answer is complete but not entirely correct. Amount owed $ 1,097.56×
Karen has a QuikTrip credit card. The card has a balance of $988.62 with an APR of 28.75%. The QuikTrip expects the minimum payment to be 4.1% of the balance. What is Karen’s minimum payment? How long will it take Karen to pay off her QuikTrip credit card? How much interest will Karen pay if she only pays the minimum payment? Show steps
If you owe $5,000 on a credit card that charges 18.99% apr and you decide to put no more charges on the account until it is paid off, how much money will you save if you make $200 payments vs $150 payments?
FIGURE OUT THE NEW STATEMENT BALANCE. You have a credit card that charges 18.99% on any outstanding balances, and 25% on cash advances, plus a fee of 3% of the amount of the cash advance. The closing date on the credit card is the 1st of each month. Last month you left a balance of $1800 on your credit card. This month you took out a cash advance of $450 and made $1600 in additional purchases. You made a payment of $950. What will the total of your new balance be on your next credit card statement, taking into account finance charges?
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 9% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun Amount owed $84 cr. $143 $260 cr. $316 $56 Check my $ 1,159
Many credit cards offer features that are tailored to users' preferences and lifestyles. In the following situations, identify which credit card is a good choice to achieve the user's goal. Special Bank Credit Cards for Different Lifestyles and Preferences Beth has a history of charging a lot on her credit card and doesn't carry a high monthly balance. Beth loves cars and plans to trade in her cars every two years, if not more often, for new ones. Which credit card is the best choice? 0 0 A reward card with an automobile rebate program A secured card Any affinity card Why is that card the best choice? O Beth's low monthly balances will protect her collateral. O The high-charge volume will provide funding for Beth's favorite political organization. The high-charge volume will provide points to use toward supporting Beth's relatively expensive plans. It is January and Eleanor just realized that she forgot to make her annual contribution to her favorite charity. She wants to make sure she…

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