HSC Standard Maths Resources

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11.3 Credit Cards

The following are some of the things you would expect to see in credit card statement:

  • Opening balance: balance unpaid at the start of the period.
  • Closing balance: balance unpaid at the end of period.
  • Minimum payment due: Minimum amount you need to pay by due date.
  • Interest free period: No. of days credit can be availed without any interest charged calculated from day 1 of statement period.
  • Cash advance: Transactions within interest-free period do not get charged interest, however, that does not apply to any cash taken out which is charged interest.
  • Interest rate: rate of interest charged if outstanding balance is not paid by due date. This interest rate is usually compounded daily.

Example 1

Consider the following credit card statement for August.

 

 

 

 

Minimum payment: $15 or 2.5%

Interest free days: 55 days

Annual interest charged after interest-free days: 22%

  1. What is the due date?
  2. What is the closing balance on 30 Aug?
  3. What is the minimum payment due on due date?
  4. If only minimum payment is made on due date and there are no further transactions, what is the balance at 30 Sep?

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The following is the type of questions you can expect in exam:

11.3.1 Exam Question Type 1

Study notes of this section and other resources can be accessed here:

11.3.2 Study Notes & Resources

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