Understanding Your Credit Card Statement
A Grade 11 math worksheet focused on interpreting and analyzing credit card statements, including calculations for interest, minimum payments, and statement balances.
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Topics
Understanding Your Credit Card Statement
Name:
Date:
Score:
Read each question carefully and provide the best answer based on your knowledge of credit card statements and financial calculations. Show all your work where applicable.
1. The is the amount you owe at the end of a billing cycle.
2. APR stands for and represents the annual cost of borrowing.
3. The is the date by which your payment must be received to avoid late fees.
4. Which of the following is NOT typically found on a credit card statement?
Minimum Payment Due
Credit Score
Available Credit
Billing Cycle Dates
5. Sarah has an outstanding balance of $850 on her credit card. Her APR is 18%. If she makes only the minimum payment of $25, how much interest will she likely be charged in the next billing cycle (assuming interest is calculated on the average daily balance)? Assume the average daily balance is approximately $825.
6. David's credit card statement shows a new balance of $1200. His minimum payment is 2.5% of the new balance or $25, whichever is greater. Calculate David's minimum payment due.
7. Paying only the minimum payment on a credit card will always lead to paying more interest over time.
True
False
8. A higher credit limit automatically means you have a better credit score.
True
False
9. Explain the difference between the 'Statement Balance' and the 'Current Balance' on a credit card statement. Why is it important to understand this distinction?
10. Describe at least three strategies a person can use to minimize the amount of interest paid on a credit card.