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maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreemer that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time you account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usag

maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreemer that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time you account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usag

FINANCIAL ACCOUNTING
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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Notes Introductory rate: Eligibility for the introductory rate is subject to your maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreement that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time your account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usage and performance on this or any other account you have with us. Prime rate: The prime rate (currently 4%) used to determine your APRS for each billing period is the U.S. prime rate published in the Wall Street Journal two business days prior to the billing date for that billing period. This credit card has an annual fee of $ which is charged to the borrower's account The transaction fee for cash advances is % of the amount of the advance, with a minimum fee . This fee charged if you take a cash advance during the six-month introductory period. The transaction fee for balance transfers is | % with a minimum fee of $ charged if you transfer balances from This fee another credit account to this credit card during the six-month introductory period. If you make a payment by check and your check bounces, then you are charged a bounced-check fee of $ If you make a late payment on the account, then you are assessed a late-payment fee. If you make a late payment with an account balance up to $500, then the late-payment fee is $ payment fee is $ However, if you make a late payment with an account balance greater than $500, then the late- If your balance exceeds the credit limit on the account (by either making excessive purchases or fees charged to the account), then you are assessed an over-the-limit fee of $ each month that the balance exceeds the credit limit.
Transcribed Image Text:Notes Introductory rate: Eligibility for the introductory rate is subject to your maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreement that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time your account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usage and performance on this or any other account you have with us. Prime rate: The prime rate (currently 4%) used to determine your APRS for each billing period is the U.S. prime rate published in the Wall Street Journal two business days prior to the billing date for that billing period. This credit card has an annual fee of $ which is charged to the borrower's account The transaction fee for cash advances is % of the amount of the advance, with a minimum fee . This fee charged if you take a cash advance during the six-month introductory period. The transaction fee for balance transfers is | % with a minimum fee of $ charged if you transfer balances from This fee another credit account to this credit card during the six-month introductory period. If you make a payment by check and your check bounces, then you are charged a bounced-check fee of $ If you make a late payment on the account, then you are assessed a late-payment fee. If you make a late payment with an account balance up to $500, then the late-payment fee is $ payment fee is $ However, if you make a late payment with an account balance greater than $500, then the late- If your balance exceeds the credit limit on the account (by either making excessive purchases or fees charged to the account), then you are assessed an over-the-limit fee of $ each month that the balance exceeds the credit limit.
Other APRS (all other APRS are variable) Balance transfers: The introductory rate is 0% until the first billing after the six- month anniversary of the opening of the account. After that, the rate will be 12.99%. Cash advances: 21.99% Default rate: 25.99% (see notes below) Variable rate information Your APRS may vary during each billing period. The rate for purchases and balance transfers is determined by adding 8.99% to the prime rate (see notes below). The rate for cash advances is determined by adding 17.99% to the prime rate, but such a rate will never be below 21.99%. The default is determined by adding no more than 21.99% to the prime rate. Grace period for repayment of purchases Not less than 28 days if you pay your total new balance in full each billing period by the due date. Payment must be received by 5:00 PM on the due date. There is no grace period for balance transfers and cash advances. Method of computing the balance Average daily balance (including new purchases) Annual fee $65 Minimum finance charge $2.00 Miscellaneous fees Transaction fee for cash advances: 5% of the amount of the transaction but not less than $30 Transaction fee for balance transfers: 5% of the amount of the transfer but not less than $60. There is no balance transfer fee during the six-month introductory period. Late fee: $20 on balances up to $500; $55 on balances over $500 Over-the-limit fee: $55 Bounced-check fee: $55 Notes Introductory rate: Eligibility for the introductory rate is subject to your maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreement that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time your account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usage
Transcribed Image Text:Other APRS (all other APRS are variable) Balance transfers: The introductory rate is 0% until the first billing after the six- month anniversary of the opening of the account. After that, the rate will be 12.99%. Cash advances: 21.99% Default rate: 25.99% (see notes below) Variable rate information Your APRS may vary during each billing period. The rate for purchases and balance transfers is determined by adding 8.99% to the prime rate (see notes below). The rate for cash advances is determined by adding 17.99% to the prime rate, but such a rate will never be below 21.99%. The default is determined by adding no more than 21.99% to the prime rate. Grace period for repayment of purchases Not less than 28 days if you pay your total new balance in full each billing period by the due date. Payment must be received by 5:00 PM on the due date. There is no grace period for balance transfers and cash advances. Method of computing the balance Average daily balance (including new purchases) Annual fee $65 Minimum finance charge $2.00 Miscellaneous fees Transaction fee for cash advances: 5% of the amount of the transaction but not less than $30 Transaction fee for balance transfers: 5% of the amount of the transfer but not less than $60. There is no balance transfer fee during the six-month introductory period. Late fee: $20 on balances up to $500; $55 on balances over $500 Over-the-limit fee: $55 Bounced-check fee: $55 Notes Introductory rate: Eligibility for the introductory rate is subject to your maintaining good credit. The rate indicated in this offer is subject to change to reflect changes in the prime rate (see below) at the time of your application. Default rate: All your APRS may increase if you default under any Card Agreement that you have with us, because you fail to make a payment to us when due, you exceed your credit limit, or you make a payment to us that is not honored. Factors considered when determining your default rate may include the length of time your account with us has been open; the existence, seriousness, and timing of defaults under any Card Agreement you have with us; or other indications of account usage
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