Penalty APRS and When it Applies Prime Rate. This APR may be applied to new purchases and balance transfers on your account if you make a late payment. Minimum Interest Charge Hoong will the penalty APR apply? If your APRS for new purchases and balance transfers are increased for a late payment, the Penalty APR will apply indefinitely. Your due date is at least 25 days after the close of each billing period (at least 23 days for billing How to Avoid Paying Interest on Purchases periods that begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due date each month. If you are charged interest, the charge will be no less than $0.50.
Penalty APRS and When it Applies Prime Rate. This APR may be applied to new purchases and balance transfers on your account if you make a late payment. Minimum Interest Charge Hoong will the penalty APR apply? If your APRS for new purchases and balance transfers are increased for a late payment, the Penalty APR will apply indefinitely. Your due date is at least 25 days after the close of each billing period (at least 23 days for billing How to Avoid Paying Interest on Purchases periods that begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due date each month. If you are charged interest, the charge will be no less than $0.50.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
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Question
Ned help on review question
![APR for Balance Transfers
APR for Cash Advances
Penalty APRS and When it Applies
Minimum Interest Charge
Edit Insert-
Insert Formats-
· · D E···
first transaction posts to your account under
this offer.
After that your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
BZ
Submit Question
28.99%. This APR will vary with the market
based on the Prime Rate.
Your due date is at least 25 days after the close
of each billing period (at least 23 days for billing
How to Avoid Paying Interest on Purchases periods that begin in February). We will not
charge you any interest on purchases if you
pay your entire balance by the due date each
month.
Question Help: Message instructor
Calculator
Between up to 16.99% and up to 26.99%
based on your creditworthiness and other
factors.
This APR will vary with the market based on the
Prime Rate.
This APR may be applied to new purchases
and balance transfers on your account if you
make a late payment.
Use the disclosure summary and the website to answer the questions below.
Hoong will the penalty APR apply? If your
APRS for new purchases and balance transfers
are increased for a late payment, the Penalty
APR will apply indefinitely.
How can you avoid paying interest when you use your credit card?
If you are charged interest, the charge will be
no less than $0.50.
IUX x² A- A- ▾ <>
- Σ Σ Α](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaaf76e4-e1e8-4cba-94c5-3c64c688b38d%2Fe0aa8cbc-229a-4e95-b561-aef465f89827%2Fr3nep05_processed.jpeg&w=3840&q=75)
Transcribed Image Text:APR for Balance Transfers
APR for Cash Advances
Penalty APRS and When it Applies
Minimum Interest Charge
Edit Insert-
Insert Formats-
· · D E···
first transaction posts to your account under
this offer.
After that your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
BZ
Submit Question
28.99%. This APR will vary with the market
based on the Prime Rate.
Your due date is at least 25 days after the close
of each billing period (at least 23 days for billing
How to Avoid Paying Interest on Purchases periods that begin in February). We will not
charge you any interest on purchases if you
pay your entire balance by the due date each
month.
Question Help: Message instructor
Calculator
Between up to 16.99% and up to 26.99%
based on your creditworthiness and other
factors.
This APR will vary with the market based on the
Prime Rate.
This APR may be applied to new purchases
and balance transfers on your account if you
make a late payment.
Use the disclosure summary and the website to answer the questions below.
Hoong will the penalty APR apply? If your
APRS for new purchases and balance transfers
are increased for a late payment, the Penalty
APR will apply indefinitely.
How can you avoid paying interest when you use your credit card?
If you are charged interest, the charge will be
no less than $0.50.
IUX x² A- A- ▾ <>
- Σ Σ Α
![Question 1
▾
< >
When you use a credit card to purchase items, you borrow money from a credit card company. If
you pay the money back by the due date each month, you are not charged for the service (unless
your card charges an annual fee). If you do not pay all of the money back at the end of the month,
the company charges you interest on the amount that you do not pay off. This amount is called
your balance. Interest is based on a percent of your balance. The annual interest rate is the APR
(annual percentage rate.)
Creditworthiness is a measure of the likelihood that you will pay your bills on time based on a
variety of factors such as your history of repayment and the amount of debt you already have.
Credit card companies use a credit score ranging from 300 to 850 to measure creditworthiness. A
person with a high credit score has good credit and will get a lower interest rate than someone with
a low credit score.
Because it is important for people to understand how much credit cards charge, the U.S.
government has a law called the Credit Card Accountability, Responsibility, and Disclosure Act of
2009, which requires companies to publish information about rates and fees in a standard format.
The standard format is a disclosure or the pricing and terms.
The disclosure begins with a summary like the one shown below. Scan this form. (That is, read it
quickly to get a general sense of the information without trying to understand every detail.) This
information will be discussed in class in more detail.
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for
Purchases
APR for Balance Transfers
APR for Cash Advances
Penalty APRS and When it Applies
How to Avoid Paying Interest on Purchases
Minimum interest Charge
Use the disclosure summar
0.00% introductory APR for 6 months from the
date of account opening.
After that, your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
0.00% introductory APR for 12 months after the
first transaction posts to your account under
this offer.
After that your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
28.99%. This APR will vary with the market
based on the Prime Rate.
Between up to 16.99 % and up to 26.99%
based on your creditworthiness and other
factors.
This APR will vary with the market based on the
Prime Rate.
This APR may be applied to new purchases
and balance transfers on your account if you
make a late payment.
How long will the penalty APR apply? if your
APRS for new purchases and balance transfers
are increased for a late payment, the Penalty
APR will apply indefinitely
Your due date is at least 25 days after the close
of each billing period (at least 23 days for billing
periods that begin in February). We will not
charge you any interest on purchases if you
pay your entire balance by the due date each
month
If you are charged interest, the charge will be
no less than 50 50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaaf76e4-e1e8-4cba-94c5-3c64c688b38d%2Fe0aa8cbc-229a-4e95-b561-aef465f89827%2F8acpqrh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
▾
< >
When you use a credit card to purchase items, you borrow money from a credit card company. If
you pay the money back by the due date each month, you are not charged for the service (unless
your card charges an annual fee). If you do not pay all of the money back at the end of the month,
the company charges you interest on the amount that you do not pay off. This amount is called
your balance. Interest is based on a percent of your balance. The annual interest rate is the APR
(annual percentage rate.)
Creditworthiness is a measure of the likelihood that you will pay your bills on time based on a
variety of factors such as your history of repayment and the amount of debt you already have.
Credit card companies use a credit score ranging from 300 to 850 to measure creditworthiness. A
person with a high credit score has good credit and will get a lower interest rate than someone with
a low credit score.
Because it is important for people to understand how much credit cards charge, the U.S.
government has a law called the Credit Card Accountability, Responsibility, and Disclosure Act of
2009, which requires companies to publish information about rates and fees in a standard format.
The standard format is a disclosure or the pricing and terms.
The disclosure begins with a summary like the one shown below. Scan this form. (That is, read it
quickly to get a general sense of the information without trying to understand every detail.) This
information will be discussed in class in more detail.
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for
Purchases
APR for Balance Transfers
APR for Cash Advances
Penalty APRS and When it Applies
How to Avoid Paying Interest on Purchases
Minimum interest Charge
Use the disclosure summar
0.00% introductory APR for 6 months from the
date of account opening.
After that, your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
0.00% introductory APR for 12 months after the
first transaction posts to your account under
this offer.
After that your APR will be 10.99% to 23.99%
based on your creditworthiness. This APR will
vary with the market based on the Prime Rate.
28.99%. This APR will vary with the market
based on the Prime Rate.
Between up to 16.99 % and up to 26.99%
based on your creditworthiness and other
factors.
This APR will vary with the market based on the
Prime Rate.
This APR may be applied to new purchases
and balance transfers on your account if you
make a late payment.
How long will the penalty APR apply? if your
APRS for new purchases and balance transfers
are increased for a late payment, the Penalty
APR will apply indefinitely
Your due date is at least 25 days after the close
of each billing period (at least 23 days for billing
periods that begin in February). We will not
charge you any interest on purchases if you
pay your entire balance by the due date each
month
If you are charged interest, the charge will be
no less than 50 50
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