Kaplan MM225 unit 5 assignment

Unit 5: Instructor Graded Assignment

Consumer Credit

In
this and future Instructor Graded Assignments you will be asked to use the
answers you found in the Unit 1 Assignment.
Note:
For these questions you need to cite a reliable source for information, which
means you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers. If you do use those sites the
instructor may award 0 points for your response.
The
Assignment problems must have the work shown at all times. The steps for
solving the problems must be explained. Failure to do so could result in your
submission being given a 0. If you have any
questions about how much work to show, please contact your instructor.
Assignments must be submitted as aMicrosoft Word®document and uploaded to the Dropbox for Unit 5. Please
type all answers directly in thisAssignment
below the question it applies to.

AllAssignments are due by Tuesday at
11:59 PM ET of the assigned Unit.

Note:All interest rates are to
be assumed to be yearly interest
rates.

For this assignment you
will need the prime interest rate, as posted in the Wall Street Journal®.

Use
the Internet to search for the current prime interest rate.
·
List the current prime
interest rate:_______________

Question 1
(5
points)
1.
You have a credit card that is charging you 9.9% + the current prime rate. What
is that interest rate on the credit card today?

Question 2
(5
points)
2.
If this same card were issued 30 years ago, what would your interest rate be?
In the event that there were multiple prime interest rates for a year, use the
one that is 30 years from the day your class started. Use the Internet to determine
what this rate is.

Question 3:
(20
points)
3.
In the month of April, your credit card (which is charging you 9.9% + the
current prime interest rate) has a balance of $1000. On April 3rd you charge
$100, then on April 20th you put 15 gallons of gas on the card. On April 23rd
your payment of $400 arrives and is posted to your account. Finally, on April
27th you charge all of your food for the month for your family of 4.

a)
What is your average daily balance at the end of the month on this card? Hint:
You will need to research and find the cost of gas and food in order to solve
this. Use the national average as of four months before the date Assignment is
due. For instance, if your Assignment is due November 3rd, 2012, use the July
2012 national average.

b)
How much interest will your card charge you this month, assuming interest is
charged on the average daily balance?

c)
If this card were using the interest rates of 30 years ago, how much interest
would your card charge you this month?

Essay
(15
points)
5. Search for a consumer research site such as:
Source:
Bankrate.com (n. d.). Retrieved from.bankrate.com”>http://www.bankrate.com

Research
and find three credit cards offered by three different companies. Write an
essay on which credit card is the best and why you think it is the best. In your essay look at things like the
interest rate, grace period, annual fees and compare those between the cards,
but in the end you must make a decision on which card you like best and why.
(Note: Professors are free to pick three cards for you to research if they
wish, please check with your teacher for specific requirements on this
question).

Requirements
·
Write
your essay in this document – do not save it in a separate file.
·
You must
clearly state your position with well-structured paragraphs using proper
grammar, spelling, and sentence structure.
·
This is
not an “opinion” question – you must offer evidence to support your position,
using properly cited sources.
·
Your
answer must be between ¾-1 page in length.
·
You must
cite and reference at least one source (book, website, periodical) using APA
format.
·
Do not
use unreliable sources such as Wikipedia, and Yahoo! Answers.

You may submit
your Assignments to the Math Center for review. Tutors will not grade or
correct the Assignment, but they will provide guidance for improvement. Tutors
will not, however, help you find web sites for the Assignment.
Be sure
to submit Assignments early enough to receive feedback and make corrections
before the Assignment due date (24 hour turn-around times Monday-Thursday and
48 hour turn-around times on weekends are typical).