Retail Banking - Credit Card Mr A drawing annual salary of Rs. 1500000 has been enjoying a credit c

Retail Banking - Credit Card Mr A drawing annual salary of Rs. 1500000 has been enjoying a credit card from your Bank.The bank has fixed a spending limit of Rs. 250000 lac on his card. During Dec,2014, he made purchase of Rs. 200000 and paid on due date (10 jan 2015) Rs. 140000 being a part of the outstanding amount of Rs. 250000.During Jan 2015,He wanted to make additional purchase of Rs. 100000 which bank allowed and he made purchase on 11 jan 2015.Rate of interest charged by bank s 3 per month. answer the following question 01. What would be the minimum payment requirement on credit card dues during any month? a.3% of due b.5% of due c.8% of As due d.10% of due Ans: Minimum payment require 5% 02. As the bank charges interest at 3% per month, what would be the annual effective rate to the user? a. 36% b. 42.58%* c. 39% d. None of the above Ans:b Solution Effective interest rate=(1+r)^n-1 =(1+0.03)^12-1 =1.42576-1 =0.42576 =42.58% 03. Daily interest charged on outstanding balance as on 11 jan,2015 will be a. Rs.207.12* b. Rs.210.72 c. Rs.202.10 d. Rs.207.00 Ans:a Solution Daily interest charged=Due outstanding*12/365*r =(110000+100000)*12/365*0.03 =210000*12*.03/365 =75600/365 =207.12 04. Total interest Charged on 10 Feb,2015 will be a. Rs.6420 b. Rs.6214* c. Rs.6312 d. Rs.6210 Ans:b Solution Total interest charged= no of days outstanding * Daily interest From 11 Jan 2015 to 10 Feb 2015 =30 days =30*207.12 =6214 05. If Mr A wants to clear all his dues on the due date on 10 Feb 2015, what amount would be required to pay Ans: . 216214 Solution outstanding amount+additional purchase+interest =110000+100000+6214 =216214 Thanks Narendra...

 

Sir if he want to clear his dues on 18Jan then what amount has to paid and for how many days

 

Please give some more example on credit card interest calculation

 

What is the date of purchase in Dec2014 is not given

 

Sir.. I found very difficult to pass Jaiib exam. I appeared two times for the exam. Even not able to clear.actually my main problem is I am not able to understand the terminologies used. Can you plz provide me a solution

 

please sir provide more questions on credit card intererest rate calculation

 

Mr. A has used is credit card limit fully. He has deposited 35,000 on 22 July. Remained 15,000 deposited on 10 Aug. 2015 • Limit 50,000 • Interest Rate 1.5% • Billing cycle due 2nd of each month • Due date of bill 22nd of each month • Overlimit withdrawl penalty 600 o Interest will be recovered for how many day ? o Interest will be recovered on which amount ? o How much interest will be recovered ? o If he withdrawals 65000 , and remained 30000 deposited on 10 aug. then How much finance charge will be there ?

 

Mr. A has used is credit card limit fully. He has deposited 35,000 on 22 July. Remained 15,000 deposited on 10 Aug. 2015 • Limit 50,000 • Interest Rate 1.5% • Billing cycle due 2nd of each month • Due date of bill 22nd of each month • Overlimit withdrawl penalty 600 o Interest will be recovered for how many day ? o Interest will be recovered on which amount ? o How much interest will be recovered ? o If he withdrawals 65000 , and remained 30000 deposited on 10 aug. then How much finance charge will be there ?