Fixing Your Credit Math Quiz
Questions: 16 · 10 minutes
1. Ignoring interest, how many months would it take to repay a $1,200 balance with payments of $150 per month?
6 months
9 months
8 months
10 months
2. A credit card has a $900 reported balance and a $3,000 limit. What is its utilization rate?
70%
23%
33%
30%
3. Under the debt-snowball method, which balance would normally receive extra payment first?
A $350 balance at 12% APR
A $700 balance at 21% APR
A $1,400 balance at 18% APR
A $3,000 balance at 9% APR
4. Assume a constant $2,000 balance for one year and use simple annual interest. Card A charges 15% with no annual fee. Card B charges 12% plus a $75 annual fee. Which costs less, and by how much?
Card A costs $15 less
Card B costs $15 less
They cost the same
Card B costs $60 less
5. A repayment plan requires eight monthly payments of $225 on a $2,200 balance. If those payments fully satisfy the balance with no added fees, how much less than $2,200 would you pay?
$200
$350
$450
$400
6. Under the debt-avalanche method, which debt receives extra payment first while minimums are maintained on the others?
A $400 balance at 8% APR
A $1,200 balance at 24% APR
A $2,500 balance at 19% APR
A $900 balance at 16% APR
7. Using simple interest, how much interest accrues on $2,000 at a 12% annual rate over six months?
$100
$240
$144
$120
8. A credit report lists a card balance as $2,400, but your verified statement balance for the same reporting date is $1,400. What is the amount of the discrepancy?
$800
$1,000
$1,200
$1,400
9. You have a $500 balance on a card with a $2,000 limit and a $1,000 balance on a card with a $3,000 limit. What is your aggregate utilization across both cards?
30%
25%
35%
50%
10. A card has a $2,000 limit and an $800 balance. If a $300 payment is reflected before the issuer reports the balance, what utilization will be reported?
15%
25%
40%
20%
11. For a rough monthly estimate, divide an 18% APR by 12. About how much interest would one month add to a $1,000 balance, ignoring compounding and new transactions?
$1.50
$12
$18
$15
12. A card has a $4,000 limit and a $1,600 balance. How much must you pay to bring its balance down to exactly 30% of the limit, assuming no new charges or interest?
$120
$300
$400
$480
13. A $1,000 balance incurs $20 in interest during the month. If you make a $50 payment and add no new charges, by how much does the principal decrease?
$20
$30
$25
$50
14. One card has a $100 balance and a $1,000 limit. Another has a $900 balance and a $3,000 limit. What is the aggregate utilization?
25%
20%
30%
40%
15. Your total revolving credit limits equal $5,000, and your balances total $2,000. If you pay $500 without closing an account or making new charges, how much available credit will you have?
$2,500
$3,000
$3,500
$1,500
16. Your gross monthly income is $5,000, and your required monthly debt payments total $750. What is your debt-to-income ratio using those figures?
6.7%
10%
15%
20%