Test. Credit - 2

Before proceeding to the solution of examples and problems be sure to read the theoretical part of the lesson 

Credit - 2

Richards’s tale

Richard has a credit card with a credit limit of £3000. Each month the interest rate is 1.32%. During the first year of his credit card he spends up to his limit and at the end of January he owes £2998.

 1. The credit card company want a payment of 5% of £2998. How much is this?

 а)  £149.96;     

 b)  £148.90;     

 c)  £149.90;     

 d)  £149.80.

 2. Richard cannot afford this payment so ignores it. The monthly interest of 1.32% of £2998 is added onto his debt. How much does he now owe? (give your answer to the nearest penny)

 а)  £3038.51;     

 b)  £3037.57;     

 c)  £3036.57;     

 d)  £3037.53.

 3. Richard did not make his monthly payment so has a penalty charge of £20. How much does he now owe?

 а)  £3038.52;     

 b)  £3037.55;      

 c)  £3036.57;     

 d)  £3037.57.

 4. The credit card company notice that Richard has gone over his credit limit and decide to increase his limit to £5000. How much money is Richard now allowed to spend before reaching this limit?

 а)  £1942.43;     

 b)  £1942.48;     

 c)  £1945.43;     

 d)  £1940.40.

 5. Over the next 4 months Richard spends happily and his credit card debt increases by another £1879. How much does he now owe?

 а)  £4935.59;     

 b)  £4936.57;     

 c)  £4938.57;     

 d)  £4936.51.

 6. The monthly payment is due. This is 5% of what Richard now owes. How much is the monthly payment? (give your answer to the nearest penny)

 а)  £247.80;     

 b)  £244.83;     

 c)  £246.83;     

 d)  £246.88.

 7. Richard can afford no more than £200. How much more would he need to make the monthly payment?

 а)  £44.80;     

 b)  £46.83;     

 c)  £48.83;     

 d)  £46.88.

 8. He fails to make this payment. The monthly interest of 1.32% of his debt is added onto his debt. How much does he now owe? (give your answer to the nearest penny)

 а)  £5000.70;     

 b)  £5003.73;     

 c)  £5001.79;     

 d)  £5001.73.

 9. Richard gets a penalty charge of £20 for not making his monthly payment. How much does he now owe?

 а  £5021.73;     

 b)  £5021.78;     

 c)  £5024.73;     

 d)  £5020.80.