Homework answers / question archive / 1)Elizabeth’s credit card balance is $5000 at an 12% APR

1)Elizabeth’s credit card balance is $5000 at an 12% APR

Finance

Share With

---

1)Elizabeth’s credit card balance is $5000 at an 12% APR. It has become difficult to make the minimum payment each month. She decided to make a plan for paying off the credit card by increasing her hours at her part-time job and applying the income to debt reduction. She estimates that she can pay $200 per month, and she plans to avoid using her card for any new purchases. How long will it take her to pay off the card dues?

13 months

22 months

16 months

29 months

2)Sarah began her credit card billing cycle with a zero balance, and her billing date is March 20. She made a $4600 purchase with her card on March 21. She receives her bill on March 24 with a due date of April 15. Her card has an 18 percent APR and a grace period. How much interest will she owe if the entire balance is paid by May 15?

$52.08

$28.75

$0

$57.50

3)Which of the following violate your consumer credit rights?

You are denied a credit card because you have never borrowed money before.

A bill collector raises their voice and threatens to tell your employer that you are a deadbeat in a phone call related to a late payment.

Your credit report contains information that relates to a person that has the same name as you.

A credit card company sends you a notice that the periodic rate on an account opened 12 months ago will double in 45 days.

4)When a credit card company offers an introductory teaser rate at zero percent,

the credit card company will lose money over time.

that is free money for the consumer.

it is typically from a bank going out of business.

the credit card company will make money over time.

5)If your credit card terms include a grace period,

Interest will not accrue on any new charges until the due date, provided that you paid your balance in full the previous month.

Interest will not accrue on any new charges until the due date.

You can pay your bill up to five days after the due date without incurring a late fee.

Interest will not accrue on your outstanding balance until the due date.

6)

From the lecture slides on cotton cultivation, all of these statements are true EXCEPT

Group of answer choices

Between 1790 and 1860 the slave population in the United States doubled

Between 1790 and 1860 cotton production increased by more than 1500 percent

By 1860 there were about 4 million slaves in the American South

By 1860, cotton accounted for over 50 percent of all exports from the United States

7)Interest rates on credit cards are higher than rates on auto loans because

credit cards have more fees and penalties.

auto loans are secured by collateral.

auto loans are negotiated by the seller, not the consumer.

each lender sets its own rates.