5. Credit card interest rates and other fees Credit cands provide many advantages and conveniences. They also carry charges and fees that can cost more money than planned for or anticipated. Credit Card Fees and Charges Eric's credit card has a variable interest rate, within a defined range, that changes periodically. The rate that the financial institution that issued his card uses as a basis to determine the current interest rate is called the base rate. The interest rate that applies to the credit card is computed as the sum of the base rate plus a certain percentage. According to the terms of his card, the interest rate is the base rate plus 7% Further, the minimum interest rate is 10%, and the maximum interest rate is 16%. - If the computed rate is less than or equal to 10%, he'l be charged 10%. - If the computed rate is greater than or equal to 16%, he'il be charged 16%. - If the computed rate is between 10% and 16%, he'll be charged the computed rate. issued his card uses as a basis to determine the current interest rate is called the base rate. The interest rate that applies to the credit card is computed as the sum of the base rate plus a certain percentage. According to the terms of his card, the interest rate is the base rate plus 7%. Further, the minimum interest rate is 10%, and the maximum interest rate is 16%. - If the computed rate is less than or equal to 10%, he'il be charged 10%. - If the computed rate is greater than or equal to 16%, he'll be charged 16%. - If the computed rate is between 10% and 16%, hell be charged the computed rate. Today, the base rate is 2%. What is Eric's interest rate today? In addition to interest charges, under certain circumstances, Enic could be subject to any of the following other fees and charges: - Late payment fees - Over-the-limit charges - Foreign transaction fees - Balance transfer fees For each of the following situations, choose the fee that most ciosely applies. - Most credit card holders have a defined line of credit, which is the maximum amount the financial institution approved for Eric to owe at any time. His line of credit is $1,000. He currently owes $1,350. Eric will likely be charged - Eric's credit card is issued in the country where he is a citizen, During a recent vacation to another continent, he used his credit card to pay for lodging, meals; and tourist attractions. Eric will likely be charged - Eric currently carries a balance on his Visa from month to month. He's going to move his Visa balance to a MasterCard card that charges a lower interest rate. Enc will likely be charged