Understanding Your Credit Card Statement
A Grade 10 math worksheet focusing on interpreting and analyzing credit card statements, including key terms, calculations, and financial implications.
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Understanding Your Credit Card Statement
Name:
Date:
Score:
Read each question carefully and provide your answers in the space provided. Show all your work for calculation-based questions.
1. The is the total amount owed on a credit card at the end of a billing cycle.
2. The is the percentage charged on outstanding balances, typically expressed per year.
3. If you only pay the , you will incur interest charges.
1. Which of the following is NOT typically found on a credit card statement?
Minimum Payment Due
Credit Score
Current Balance
Due Date
2. The 'Statement Period' indicates:
The date your card was opened
The timeframe covered by the statement
How long you have to pay your bill
The date your next statement will be issued
1. Sarah has an outstanding credit card balance of $1,200. Her APR is 18%. If she makes only the minimum payment of $30 and no new purchases, approximately how much interest will she be charged in the first month? (Assume interest is calculated on the average daily balance, but for this problem, simplify by calculating on the initial balance.)
2. David's credit card statement shows a 'Previous Balance' of $500, 'New Purchases' of $300, and 'Payments/Credits' of $200. What is his 'New Balance'?
1. Paying only the minimum payment on a credit card will help you avoid all interest charges.
True
False
2. A higher APR generally means you will pay more in interest on an outstanding balance.
True
False
Imagine a credit card statement with the following details:
Previous Balance: $800.00
Payments: $200.00
New Purchases: $450.00
Cash Advance: $100.00
Interest Rate (APR): 24%
1. Calculate the 'New Balance' for this statement. Show your work.
2. If the minimum payment is 3% of the new balance or $25, whichever is greater, what would be the minimum payment due for this statement?