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Ch 4: Consumer Credit

Ch 4: Consumer Credit. 4.5 Credit Card Statements. Answer the following questions in your groups. What do you see on credit card statements?? How might a credit card company benefit from a shorter billing cycle for a college student who has yet to establish a credit track record?

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Ch 4: Consumer Credit

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  1. Ch 4: Consumer Credit

    4.5 Credit Card Statements
  2. Answer the following questions in your groups What do you see on credit card statements?? How might a credit card company benefit from a shorter billing cycle for a college student who has yet to establish a credit track record? Describe the types of errors a credit card user might find on his or her monthly credit card statement. How can you establish credit responsibly?
  3. Credit Card Statements A billing cycle is used to determine a credit card bill A predetermined amount of time set by the credit card company Generally one month A credit card statement shows you the credits and debits over the course of the billing cycle Very important to look closely at each statement to make sure information is correct
  4. Sample Credit Card Statement How to read a credit card statement http://www.aie.org/managing-your-money/credit-cards/How-to-Read-a-Credit-Card-Statement.cfm
  5. What is everything called???
  6. What is everything called??
  7. Example 1 The summary portion of Jane Sharp’s credit card statement shown is above. a. Explain how the new purchases amount was determined. b. Explain how the new balance amount was determined.
  8. Check your understanding Suppose you create the following spreadsheet that models the statement summary and input the values in row 2. Write the spreadsheet formula to compute the new balance in cell F2.
  9. Example 2 Pascualhas a credit line of $15,000 on his credit card. His summary looks as follows. How much available credit does Pascual have?
  10. Check your understanding Rhonda had a previous balance of $567.91 and made an on-time credit card payment of $567.91. She has a credit line of x dollars and made purchases totaling y dollars. Write an algebraic expression that represents her current available credit.
  11. Example 3 Myrna is examining the summary section of her credit card statement. Myrna has checked all the entries on her bill and agrees with everything except the new balance. Determine where the error was made.
  12. Check your understanding Determine the error that was made using the following summary statement.
  13. Ch 4 Asnmt 5 Pg. 205 #2 – 15 , 17
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