Questions from Personal Finance

Q: Chrissy currently has a credit card that charges 15% interest.

Chrissy currently has a credit card that charges 15% interest. She usually carries a balance of about $500. What will her total annual interest be with her current card?

Q: Margie has had a tough month. First, she had dental

Margie has had a tough month. First, she had dental work that cost $700. Next, she had her car transmission rebuilt, which cost $1,400. She put both of these unexpected expenses on her credit card. If...

Q: Troy has a credit card that charges 18% on outstanding balances

Troy has a credit card that charges 18% on outstanding balances and on cash advances. The closing date on the credit card is the first of each month. Last month Troy left a balance on his credit card...

Q: Eileen (from question 7) wants a car that costs $

Eileen (from question 7) wants a car that costs $12,000. How long would it have taken Eileen to save for the outright purchase of the car if she did not have any credit card debt and used the interest...

Q: Chen recently graduated from college and accepted a job in a new

Chen recently graduated from college and accepted a job in a new city. Furnishing his apartment has proved more costly than he anticipated. To enable him to make purchases, he applied for and received...

Q: Paul’s credit card closes on the 3rd of the month, and

Paul’s credit card closes on the 3rd of the month, and his payment is due on the 30th. If Paul purchases a stereo for $300 on June 12th, how many interest-free days will he have? When will he have to...

Q: What is a credit limit? How can you increase your credit

What is a credit limit? How can you increase your credit limit?

Q: How might you eliminate the annual fees that are charged by some

How might you eliminate the annual fees that are charged by some credit cards?

Q: When is a finance charge applied to credit purchases? What is

When is a finance charge applied to credit purchases? What is the common range of interest rates on credit cards?

Q: Should you view credit cards as a source of funds? Why

Should you view credit cards as a source of funds? Why or why not? Why should you self-impose a tight credit limit?