Case Study - Retail Banking - 1 A bank "X" issued a platinum credit card to mr. A with a credit lim

Case Study - Retail Banking - 1 A bank "X" issued a platinum credit card to mr. A with a credit limit of rs. 1,00,000. The bill date is 2nd of every month and due date is 22nd of the same month. The rate of interest charged is 2.38% per month. interest is calculated on daily basis. Note: there is no interest charged for the first 50 days. Overdue charges is rs. 600 Mr. A makes a shopping worth rs. 1,00,000 in the month of july and paid rs. 85000 on 22nd july and rest pays on 10th august with final payment. Q.1 For how much days interest will be paid? i) 18 days ii) 21 day iii) ..... days iv) No interest will be paid as MAD is paid Q.2 What will be the financial charges on final payment? Q.3 How much payment he will make in the full settlement at 10 august? Q.4 What will be the overdue charges for the month? Q.5 What will be the late payment charges are levied on him?

 

1. 18 days2. 211 rs.3.15811 rs4. 811 rs5. 600 rsSee translation

 

Friends, I told, let us discuss. But very few people are active during the discussion. Merely posting the solution and answer may guide you to understand only the particular problem and will not make you understand the concept. Everyone wants ready made solution. First please try to solve yourself.

 

How 2nd que ans is 211rs...here is given in the que...there is no interest charge for the first 50 months..@@Nitin Siddharth Dhandare

 

No interest.... Bill will be generated on Aug 2nd for 15,000 to be paid by 22nd Aug.... So Mr A pays before due date. Hence Zero Pls correct if I am wrong... Purchase date is not mentioned so assumed after july 2nd. Also 50 months intrest free offer is available.

 

Yeah I am also thinking the same but not 100% perfect

 

Rs 15000 belong to previous bill to be paid on 22 july but not paid so interest has to be paid for 18 days

 

What does it means..no int charged for first day 50 month

 

If you shop for Rs. 1,00,000/- you repay only Rs. 1,00,000/- no int will be charged..for first 50 months. After 50 months if you shop for Rs. 1,00,000/- you will have to pay Rs. 1,00,000/- + int @2.38% on Rs. 1,00,000/-.

 

Yes if txn is done on 1 st july ans will be yours. But i have a confusion with the days. Is 22 nd july in the calculation or not? Bcoz if we calculate from 22nd it will bw 19 days

 

sir please provide explanation of this case study please sir

 

f he purchase on 1st July he has to pay that amount in July 22 bill.. if he purchase after July 2nd he has to pay in august 22nd bill .In question he has not mentioned whether he purchased before 2nd July or after 2nd july

 

Sir same question with same data had come only interest charged was 2.5 instead of 2.38%