3: Financial Literacy Use the credit card statement on the following page to answer questions 13-16. Test Account number: 5676 2376 1120 4912 Period covered: New Balance: Minimum payment Due date September 20 - October 17 2011 1836.25 Previous balance: 40.00 Payments/credits October 26, 2011 Purchases/Adjustments Credit Limit Credit Available Statement closing date Days in Billing cycle 1125.30 1125.30 1836.25 8000.00 6163.75 October 17, 2011 28 Transaction date Posting date Description Reference number Account number Amount 4951 4951 09/21 09/23 09/25 09/28 10/07 10/11 10/14 03/22 03/24 03/26 03/29 03/08 03/12 03/15 4951 Joe's Nash Gym WWC Esso Thrifty's Sheraton Thrifty's 7878 8160 2051 2609 5363 2597 5363 4951 4951 4951 4951 208.67 58.45 1000.00 78.50 165.43 269.95 79.23 Charges this period 1860.23 Payments and other credits 10/14 09/15 10/15 09/16 Rona Payment 4212 4378 4951 4951 -23.98 -1125.30 Interest charges this period at 17.99% annually Interest charges on cash at 17.99% annually Balance due 0 0 1836.25 13. How much did this person charge on their credit card during this billing cycle? a. $1836.25 b. $1860.23 c. $6163.75 d. $1125.30 2. Use the mortgage loan calculator to determine how much more you would pay on a $250000 mortgage at 5.5 percent taken out over 30 years as compared to 15 years. INTEREST RATE MONTHLY PAYMENT PER THOUSAND DOLLARS 15 years 20 years 30 years 8.18 6.89 8.31 7.03 5 84 5.69 5.5% 5.75% 2 3 marts 3. Kris's parents are considering two housing options for their son while he attends university The first option is to rent a one bedroom apartment at a cost of $900 per month, including all utilities for 9 months of the year. The other option is to buy a three bedroom home for $325,000 that would require a 10% down payment with a mortgage amortized over 25 years at an annual rate of 4.35% compounded semi-annually. They could rent out the other rooms and generate $8,000 a year. The cost of taxes, utilities, and maintenance would be $3.600 per year. Assume the selling price of the house stays constant at $325,000. a. What would the cost of renting be for the five years