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  • Caiib Retail Credit Card Case Study

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    folines
    28 views6 pages
    This document contains a case study about credit card usage and questions to test understanding. It discusses Mr. Ram's credit card with a credit limit of Rs. 10 lakhs and an interest rate of 5% per month. Several multiple choice questions are presented about credit card purchases, interest calculations, minimum payment amounts, and effective annual interest rates. The document provides the calculations and solutions.

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    Original Title

    CAIIB RETAIL CREDIT CARD CASE STUDY

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    This document contains a case study about credit card usage and questions to test understanding. It discusses Mr. Ram's credit card with a credit limit of Rs. 10 lakhs and an interest rate of 5% per month. Several multiple choice questions are presented about credit card purchases, interest calculations, minimum payment amounts, and effective annual interest rates. The document provides the calculations and solutions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    28 views6 pages

    Caiib Retail Credit Card Case Study

    Uploaded by

    folines
    This document contains a case study about credit card usage and questions to test understanding. It discusses Mr. Ram's credit card with a credit limit of Rs. 10 lakhs and an interest rate of 5% per month. Several multiple choice questions are presented about credit card purchases, interest calculations, minimum payment amounts, and effective annual interest rates. The document provides the calculations and solutions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 6

    JOI

    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    RETAI
    LMODULE-
    B
    CHAPTER8:DEBI
    TANDCREDI
    TCARDS

    CREDI
    TCARDBASEDCASESTUDY
    JOI
    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    CaseSt
    udy
    :

    Mr.Ram hav
    ecredi
    tcardofSBIbankandcr edi
    t
    l
    imiti
    sRs10Lac.bil
    li
    ngdat eis10thofevery
    monthandmaximum interestf
    reeperiodis30
    daysandrat
    eofInt
    erestis5%permont h.
    Now,
    answeroft
    hef
    oll
    owi
    ngQuest
    ion:

    Ques1:Mr.Ram purchasedpr
    oductonl
    ineofRs.
    2000byUsingcr
    editCardondated10September
    2021.
    Whataremini
    mum paymentMr.Ram hav
    etoPay
    onorbefor
    eduedatet
    oav oi
    dpenal
    ty.

    a.Rs.100 (
    5%of2000)
    b.Rs.60 (
    3%of2000)
    c.Rs.250
    d.Rs.500
    JOI
    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    Ques2: I
    fbi
    ll
    edamountisRs.200,whatwil
    lbe
    minimum paymentMr.Ram needtopayonor
    beforeduedat
    etoavoidpenalt
    y?

    a.Rs.200/
    -
    b.5%ofRs.200/
    -.
    c.Rs.250/
    -
    d.None

    Ques3:
    Cal
    cul
    ateannual%Rat
    e?
    a.36%
    b.42%
    c.60%
    d.24%
    Sol
    uti
    on:Annual%Rat
    e=Mont
    hlyr
    ate*12
    =5%*
    12=60%
    JOI
    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    Ques4:
    Cal
    cul
    atet
    heef
    fect
    iveannualRat
    e?
    a.79.
    59%
    b.60.
    86%
    c.71.
    65%
    d.80.
    56%
    Ef
    fect
    iver
    ateofi
    nter
    est
    :
    For
    mul
    a={[
    1+r
    ]^n-
    1}*
    100
    r=0.
    05
    {
    [1+0.
    05]
    ^12–1}*100
    {
    1.7959-
    1}*
    100={
    0.7959}
    *100=79.
    59%

    Ques5:Mr.Ram pur
    chasedonlineofRs.4Lacby
    usi
    ngcredi
    tcardondated6thJanuar
    y2021,aft
    er
    35dayshepaidenti
    reoutst
    andingamountwit
    h
    i
    nter
    est.
    Howmuchi
    nter
    estwaspai
    dbyMr
    .Ram?

    a.Rs.23016.
    00
    b.Rs.72000.
    60
    c.Rs.20385.
    60
    d.Rs.88208.
    20
    JOI
    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    Sol
    uti
    on:
    Pur
    chasedat
    e:06Januar
    y2021
    Bi
    ll
    ingdat
    e:10Januar
    y2021
    Duedat
    e:8Febr
    uar
    y2021[
    30day
    sfr
    om bi
    ll
    ing
    dat
    e]
    Ram Pai
    don:9Febr
    uar
    y2021
    [
    35day
    sfr
    om pur
    chasedat
    e06-
    01-
    2021]

    *
    Nowsincehehasmissedt
    heduedat
    esoneed
    t
    opayf
    ulli
    nter
    estof35day
    s.
    [
    dif
    fer
    enceb/
    wpur
    chasedat
    e&pai
    ddat
    e]

    Permont
    hint
    erest=5%=0.
    05

    Pery
    eari
    nter
    est=5%*
    12=60%=0.
    60

    Perdayi
    nter
    est=0.
    60/
    365=0.
    001644

    Tot
    ali
    nter
    estpai
    d=4,
    00,
    000*0.
    001644*
    35
    =23016
    JOI
    NCAI
    IBWI
    THASHOKONYOUTUBE&App
    Ques6:Mr.Ram purchasedpr
    oductonli
    neofRs.
    6Lacbyusingcreditcar
    dondated15thMarch
    2021,
    aft
    er52day shepaidenti
    reout
    standi
    ng
    amountwit
    hInterest.
    HowmuchI
    nter
    estpai
    dbyMr
    .X.
    ?
    a.Rs.20219.
    15
    b.Rs.20219.
    15
    c.Rs.12131.
    49
    d.zer
    o

    Sol
    uti
    on:
    Pur
    chasedat
    e:15-
    03-
    2021
    Bi
    ll
    eddat
    e:10-
    04-
    2021
    Duedat
    e:09-
    05-
    2021 [
    10-
    04-
    2021+30day
    s]
    Pai
    daf
    terday
    s:52day
    s
    Pai
    ddat
    e:05-
    05-
    2021[
    15-
    03-
    2021+52day
    s]

    Duedat
    eis9Maywhi lehepai
    don5Mayhence
    zer
    oint
    erestwi
    llbechar
    ged.

    Thanky
    ou

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