Credit and Credit Cards Credit Cards They are all around you Most people have at least one Sonduvat. They are deri Aci cand allows you to pay for merchandise Services by Borowing against line of credit. You then make monthly payment in the outstanding balance. For example, supposta hunk offers y credit card with a line of credit of $10,000That means that you can purchase up to $10,000 of merchandise or service Rather than being withdrawn immediately from your bank account is well cut with a debit card beatly lent to you by the credit card company. Each month, you will receive a bill to the credit card company. You have the option to pay the entire amount. However, you may also make a minimum payment. The minimum payment is the lowest amount that you are required to pay on your credit card debt Aenedit card company may allow you the pen. The arce period is the length of time from when you make a purchase to when the company be change you interest on that purch If thereofceperiodist will start scelting immediately Ather the race period in the credit card company begins chuting interest on your halance The interest you pay on the money you owe to the credit card company is known as the face charge. Many companies compute a monthly finance charge based on your average daily haline for the month and chure-interest on that want Others calculate finance charges on the average daily balance plus purch. The finance charge in exposed nx inanmaal percentage rate (APK) The APR is often ben 10 and 1. An AI'R of for example, deres not mean you are paying every month It is what you would payer the core of a year. Insteal you would pay 1/12 of 18%, ar 1.3. every month. You should compare the APR for different credit cand before selecting one Some credit card companies may offer an introductory ate. Am introductory rate is a remporary, orwer APR that usually as for months before converting to a normal cate. Make You know when the introductory rate and so you are not fooled into thinking the AP is lower than it truly is ACTIVITY-COMPUTING FINANCE CHARGES AND FEES Situation 1. Acredit card company was your average daily balance to compute your finance charpe. You charye Stoo en May 1 and 5200 on May 20 What is your average daily balance 2. If the APR on this credit card in In's What would the finance charger be for May Situation 2. Acredit card company was the outstanding balance at the beginning of the filling cycle to compute the te lut. As of chruary 1, which is the beginning of the willing cycle, you have a credit card balance of $5,000 Only 5. you pay off the entire balance and do not use the card again during the mon What will the finance charge be when you receive your bill at the end of the big cyck if you are charged APR af 12 Credit and Credit Cards Credit Cards They are all around you Most people have at least one Sonduvat. They are deri Aci cand allows you to pay for merchandise Services by Borowing against line of credit. You then make monthly payment in the outstanding balance. For example, supposta hunk offers y credit card with a line of credit of $10,000That means that you can purchase up to $10,000 of merchandise or service Rather than being withdrawn immediately from your bank account is well cut with a debit card beatly lent to you by the credit card company. Each month, you will receive a bill to the credit card company. You have the option to pay the entire amount. However, you may also make a minimum payment. The minimum payment is the lowest amount that you are required to pay on your credit card debt Aenedit card company may allow you the pen. The arce period is the length of time from when you make a purchase to when the company be change you interest on that purch If thereofceperiodist will start scelting immediately Ather the race period in the credit card company begins chuting interest on your halance The interest you pay on the money you owe to the credit card company is known as the face charge. Many companies compute a monthly finance charge based on your average daily haline for the month and chure-interest on that want Others calculate finance charges on the average daily balance plus purch. The finance charge in exposed nx inanmaal percentage rate (APK) The APR is often ben 10 and 1. An AI'R of for example, deres not mean you are paying every month It is what you would payer the core of a year. Insteal you would pay 1/12 of 18%, ar 1.3. every month. You should compare the APR for different credit cand before selecting one Some credit card companies may offer an introductory ate. Am introductory rate is a remporary, orwer APR that usually as for months before converting to a normal cate. Make You know when the introductory rate and so you are not fooled into thinking the AP is lower than it truly is ACTIVITY-COMPUTING FINANCE CHARGES AND FEES Situation 1. Acredit card company was your average daily balance to compute your finance charpe. You charye Stoo en May 1 and 5200 on May 20 What is your average daily balance 2. If the APR on this credit card in In's What would the finance charger be for May Situation 2. Acredit card company was the outstanding balance at the beginning of the filling cycle to compute the te lut. As of chruary 1, which is the beginning of the willing cycle, you have a credit card balance of $5,000 Only 5. you pay off the entire balance and do not use the card again during the mon What will the finance charge be when you receive your bill at the end of the big cyck if you are charged APR af 12