4. You just got your first credit card, a Visa card, and the annual interest rate for the card is 24%. After getting the card you go out and buy some video games for $326. The limit on your card is $10,000, so you aren’t worried about going over the limit, yet. After a week or so, you take a friend out for dinner, and the meal, with the tax and the tip, costs $89.95. Then you need to buy some school supplies and books that cost $250. All these purchases were made in one month, and you didn’t pay off the balance in that first month.

How much interest did you pay on the first payment?


You have a savings account with a balance of $250. If you use that money to make a payment, what is your balance after you make the payment? Remember to calculate the interest, add it to the principal, then deduct it from the payment. Explain how you arrived at your answer.