Answer Happy

Credit Card Fees and Charges Becky's credit card has a variable interest rate, within a defined range, that changes periodically. The rate that the financial institution that issued her 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 her card, the interest rate is the base rate plus 6% 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%, she'll be charged 10%. • If the computed rate is greater than or equal to 16%, she'll be charged 16%. • If the computed rate is between 10% and 16%, she'll be charged the computed rate. Today, the base rate is 5%. What is Becky's interest rate today? % In addition to interest charges, under certain circumstances, Becky 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. • Becky currently carries a balance on her MasterCard from month to month. She's going to move her MasterCard balance to a Visa card that charges a lower interest rate. Becky will likely be charged • Becky's credit card payment was due on December 17. She made a payment on December 23. Becky will likely be charged • Most credit card holders have a defined line of credit, which is the maximum amount the financial institution approved for Becky to owe at any time. Her line of credit is $2,500. She currently owes $3,675. Becky will likely be charged