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Ex 2E Purchase Options

The document outlines different payment options including cash, debit cards, and credit cards, detailing their functionalities and terms. It explains the concept of interest, interest-free periods, and the associated costs of borrowing with credit cards. Additionally, it mentions the potential surcharges for using debit and credit cards for electronic funds transfers at point of sale.

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nnetr345
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15 views2 pages

Ex 2E Purchase Options

The document outlines different payment options including cash, debit cards, and credit cards, detailing their functionalities and terms. It explains the concept of interest, interest-free periods, and the associated costs of borrowing with credit cards. Additionally, it mentions the potential surcharges for using debit and credit cards for electronic funds transfers at point of sale.

Uploaded by

nnetr345
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ELE PURCHASE OPTIONS

TERMS
CASH -

physical money
>
-
coins and notes
.

DEBIT CARD -

cards that allow


you to electronically transfer money from
your savings.
CREDIT CARO -
card that allows you to payment with
make a the bank's
. This must be
money repaid according to the bank's terms.

Different card have different rules and costs


providers
eg fixed annual Fee
variable Fee that represents the cost of
borrowing
Debit and Credit cards used to make EFTPOS (Eletronic Funds Transfer at
Point ofSale) payments may have a
surcharge.
INTEREST Variable fee charged by lenders as a cost for borrowing
.
-

INTEREST-FREE PERIOD -

Many Credit cards have this , the number of


days
between the purchase date and the monthly balance , where the
bank does not charge interest .
After interest-free the amount of
period ends ,
money owed on a

credit card is
given by the formula :

A amount owed
Px) x108)"where
:

A =
+

purchase price initial


P =
amount
credit
owing on

im
card
This Formula assumes no r = annual interest rate ( %)

debt owing card =


number of days since interest-free
previous
on n

ended
period .
From
previous period

ALL EXAMPLES FROM TEXT BOOK

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