CARD SERVICES UNDERSTANDING INTEREST

Example 3: Full payment is received prior to the end of the introductory period –
0% for 4 months BT (continued)
February Statement
Statement Period 3 February 2008 – 2 March 2008
Summary of Charges
Opening Balance $1,182.34
Payments & Credits -$24.00
Purchases $0.00 Dr
Cash Advances $0.00
Interest & Other Charges $0.00
Closing Balance $1,161.35 Dr
Payment Summary
Closing Balance $1,161.35
Minimum Payment Due $24.00
Minimum Payment Due Date 27/03/08
Overlimit Amount NOW DUE $0.00
Overdue Amount NOW DUE $0.00
Transaction Summary
Date Detail Amount Balance
03/02/2008 OPENING BALANCE $1,182.34 Dr
27/02/2008 PAYMENT -$24.00 $1,158.34
02/03/2008 INTEREST – PURCHASES $3.01 $1,161.35
End of statement
Minimum payment is received and account still within Introductory offer.
Aggregated Balances for February
Date Detail Amount Balance No. of Aggregated
Days* Bal**
03/02/2008 OPENING $200.00 $200.00 29 $5,800.00
BALANCE TOTAL $5,800.00
Interest charged = Aggregated Balance (5800) X Daily Rate (0.051918%) = $3.01
The payment on $24.00 is applied to the BT balance. Interest is charged on
Annual Fee and any associated interest until the full Balance Transfer balance is
paid off.
Example 3: Full payment is received prior to the end of the introductory period –
0% for 4 months BT (continued)
March Statement
Statement Period 3 March 2008 – 2 April 2008
Summary of Charges
Opening Balance $1,161.35
Payments & Credits -$1,161.35
Purchases $162.06 Dr
Cash Advances $0.00
Interest & Other Charges $3.22
Closing Balance $165.28 Dr
Payment Summary
Closing Balance $165.28
Minimum Payment Due $20.00
Minimum Payment Due Date 27/04/08
Overlimit Amount NOW DUE $0.00
Overdue Amount NOW DUE $0.00
Transaction Summary
Date Detail Amount Balance
03/03/2008 OPENING BALANCE $1,161.35
10/03/2008 GROCERIES $53.83 $1,215.18 Dr
15/03/2008 ENTERTAINMENT $108.23 $1,323.41
27/03/2008 PAYMENT -$24.00 $1,299.41
01/04/2008 PAYMENT -$1,137.35 $162.06
02/04/2008 INTEREST – PURCHASES $3.22 $165.28
End of statement
Minimum payment is made on 27/03/2008 and full closing balance is received
before the introductory offer end date. Offer end date is 02/04/2008 (4 months
from account approval date on 3rd December 2007).
Aggregated Balances for March
Date Detail Amount Balance No. of Aggregated
Days* Bal**
03/03/2008 OPENING $200.00 $200.00 31 $6,200.00
BALANCE TOTAL $6,200.00
Interest charged = Aggregated Balance (6200) X Daily Rate (0.051918%) = $3.22
Payment is received for the full balance. Interest is charged only on Annual Fee
and any associated interest.
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