You will use the following information from the credit card disclosure for Question 4. A cash advance is when you use your credit card to get cash instead of using it to make a purchase.

28.99%. This APR will vary with the market based on the Prime Rate.

(4) Discuss each statement below and decide if it is reasonable.

Annual Percentage Rate (APR) for Purchases APR for cash advances

After that, your APR will be 10.99% to 23.99% based on your creditworthiness. This APR will vary with the market based on the Prime Rate. 28.99%. This APR will vary with the market based on the Prime Rate.

APR for Cash Advances

1. (a) Jeff pays the highest interest rate for purchases he makes with his credit card. For a cash advance, he would pay $0.05 more for each dollar he receives in cash than he pays for purchases he makes with his credit card.

2. (b) The APR for cash advances is about two-and-a-half times as much as the lowest APR for purchases.