Credit Card Fees and Charges

Charles$$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 $16\%.$

$$ If the computed rate is less than or equal to $10\%,$ he$$ll be charged $10\%.$

$$ If the computed rate is greater than or equal to $16\%,$ he$$ll be charged $16\%.$

$$ If the computed rate is between $10\%$ and $16\%,$ he$$ll be charged the computed rate.

Today, the base rate is $2\%.$ What is Charles$$s interest rate today?

$\%$

In addition to interest charges, under certain circumstances, Charles 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 closely applies.

$$ Most credit card holders have a defined line of credit, which is the maximum amount the financial institution approved for Charles to owe at any time. His line of credit is $$1,000.$ He currently owes $$1,350.$ Charles will likely be charged $.$

$$ Charles$$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. Charles will likely be charged $.$

$$ Charles currently carries a balance on his MasterCard from month to month. He$$s going to move his MasterCard balance to a Visa card that charges a lower interest rate. Charles will likely be charged $.$