Web Application Chapter 11 page 432

It is important that consumers fully understand their credit-card statements. Review the Visa credit-card statement shown at www.usa.visa.com/personal/practical_money_skills/understand_your_statement.html and answer the following questions.

1. The credit line for this customer is $1200. The credit amount available is $1074.76. Why is the credit amount available different from the credit line?

2. The interest rate is stated as 19.80%. How is the periodic rate calculated to 1.65%?

3. Does this sample statement reflect open-end credit or a revolving charge account? Explain using information from Objectives 1 and 2 on page 432 of your textbook.

Include the date of the information in your answer.

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