Complete the following questions in your notebook and submit when done. For questions 1-3, calculate the total amount of interest and fees and assume you are borrowing $2,200 for four months (120 days).

1. You take out the money as a cash advance at 21.99%, compounded daily. Your creditor charges a flat fee of $3, plus 2% of the transaction.
2. You use a convenience cheque (also known as a credit card cheque) to pay for the purchase. The annual interest rate on your credit card is 11.99%, compounded daily, and your creditor charges a 1% transaction fee.

3. You take out a bank loan for the amount of the purchase at 5.5%, compounded monthly.

4. What is the difference between total account balance and minimum

payment on a monthly statement.

5. Name the type of user fee or penalty cost you would be charged by a credit card company in the following scenarios:

1. You do not use your Triangle Mastercard for a year and a half.
2. You use your credit card to withdraw money from an automatic banking machine (ATM).
3. You buy a S2000 laptop using your credit card that has a credit limit of $1500.

ASSIGNMENT (Unit 4 - Assignment \#3) Complete the following questions in your notebook and submit when done. For questions 1-3, calculate the total amount of interest and fees and assume you are borrowing $2,200 for four months ( 120 days). 1. You take out the money as a cash advance at 21.99%, compounded daily. Your creditor charges a flat fee of $3, plus 2% of the transaction. 2. You use a convenience cheque (also known as a credit card cheque) to pay for the purchase. The annual interest rate on your credit card is 11.99%, compounded daily, and your creditor charges a 1% transaction fee. 3. You take out a bank loan for the amount of the purchase at 5.5%, compounded monthly. 4. What is the difference between total account balance and minimum payment on a monthly statement. 5. Name the type of user fee or penalty cost you would be charged by a credit card company in the following scenarios: a) You do not use your Triangle Mastercard for a year and a half. b) You use your credit card to withdraw money from an automatic banking machine (ATM). c) You buy a $2000 laptop using your credit card that has a credit limit of $1500