1. 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 fall this month. How much does she owe with a 12% APR and the following transactions?
average daily balance, finance charge, and new balance. (Round final answers to the nearest cent.
3. First America Bank’s monthly payment charge on a 48-month, $20,000 loan is $488.26. U.S. Bank’s monthly payment fee is $497.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? (Use the Business Math Handbook.
4. From the following facts, Molly Roe has requested you to calculate the average daily balance. The customer believes the average daily balance should be $877.67. Respond to the customer’s concern.
6. Dr. Dennis Natali plans to take advantage of a 0% interest balance transfer credit card offer to pay off a $7,250
loan he has. If his loan is at 7.5% interest for 12 months, what is his payment? How much will he save in interest?
7. Sonja Upon considered closing her travel agency, Opos Tours, during the pandemic, since travel had almost ceased. But she would prefer to keep her business open. If she didn’t close the agency, she would need to take out a $20,000 loan to cover operating expenses. She found a business loan at 9% for 60 months. What would her monthly payment by table be if she decided to take out the loan?
8. Teri Silva’s Whisker Watcher pet watching business shut down during the pandemic since people were no longer traveling and therefore didn’t need her pet watching service. To help her until she found a new job, Teri’s credit union offered her a $9,500 personal loan requiring no collateral with payments of $218.78 monthly for 4 years. Calculate her APR by table.
9. Cindi Cavalier was furloughed from her job at Red Robin Garden Store for six months at the start of the pan-demic. She normally has paid her credit card off each month. Because of being furloughed, however, she has been unable to. Calculate Cindi’s average daily balance, finance charge, and new balance. Her finance charge is 17% APR. (Round final answers to the nearest cent.)