Understanding Your Credit Card Statement
A Grade 7 worksheet to help students understand the components and calculations involved in a credit card statement, focusing on financial literacy.
Includes
Standards
Topics
Understanding Your Credit Card Statement
Name:
Date:
Score:
Read each question carefully and answer to the best of your ability. Show your work for calculation questions.
1. The is the total amount you owe on your credit card at the end of a billing cycle.
2. An is a fee charged when you don't pay your credit card bill on time.
3. The is the smallest amount you must pay by the due date to avoid late fees.
4. Which of the following is NOT typically found on a credit card statement?
Account Number
List of recent purchases
Your social security number
Minimum payment due
5. What does APR stand for on a credit card statement?
Annual Payment Rate
Average Percentage Return
Annual Percentage Rate
Account Processing Ratio
6. Explain the difference between your 'current balance' and your 'minimum payment due' on a credit card statement.
7. Sarah's credit card statement has a previous balance of $250.00. She made new purchases totaling $130.00 and a payment of $100.00. What is her new balance?
8. David's credit card has an APR of 18%. If he has an average daily balance of $500 and the billing cycle is 30 days, approximately how much interest will he be charged for this cycle? (Hint: Monthly interest rate = APR/12)
9. Paying only the minimum payment due on a credit card will always help you avoid paying interest.
True
False
10. A credit limit is the maximum amount of money you are allowed to charge to your credit card.
True
False