Allocate a mixed-rate card payment
See this course’s project requirements
A reconciled fictional card statement with daily-interest estimate, grace-period decision, payment allocation and a deadline plan.
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What to include
- A reconciled credit-card transaction register and statement check.
- A billing-cycle timeline with current balance, statement balance and applicable payment action.
- A balance-days interest worksheet with rate units and calculation limits.
- A payment-allocation ledger with category balances and a total-debt check.
- A promotional repayment calendar with a full-payoff check and offer-type comparison.
- A next-statement audit with credited payments, new charges and an exception note.
Review and revise
Use these criteria to check your work and choose what to improve.
- All supplied records reconcile and the decision uses the named case rules.
- Calculations show units, intermediate values and a second check.
- Changed-input practice revises the affected result and identifies uncertainty.
- The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
Want more background?
The idea in everyday life
This is an original fictional practice case. No account, payment, personal record or outside participation is required. Balances: cash advance $300 at 30%; purchases $700 at 18%. Payment $150, minimum $40. Case issuer allocates the $40 minimum to purchases; excess goes to higher-rate debt. Ignore new interest. For the covered U.S. credit-card accounts, the general Regulation Z rule directs amounts above the required minimum to higher-APR balances first. It does not prescribe how the issuer allocates the minimum. Special provisions can apply, including deferred-interest balances near expiration and certain secured balances; verify the actual agreement and applicable rule before real use. This ordinary mixed-rate case contains no such special balance, and its minimum allocation is supplied only for this exercise.
Separate the issuer’s minimum-payment allocation from the general higher-rate-first rule for amounts above the minimum.
Allocate a mixed-rate card payment — worked practice
Separate the issuer’s minimum-payment allocation from the general higher-rate-first rule for amounts above the minimum.
Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Balances: cash advance $300 at 30%; purchases $700 at 18%. Payment $150, minimum $40. Case issuer allocates the $40 minimum to purchases; excess goes to higher-rate debt. Ignore new interest. For the covered U.S. credit-card accounts, the general Regulation Z rule directs amounts above the required minimum to higher-APR balances first. It does not prescribe how the issuer allocates the minimum. Special provisions can apply, including deferred-interest balances near expiration and certain secured balances; verify the actual agreement and applicable rule before real use. This ordinary mixed-rate case contains no such special balance, and its minimum allocation is supplied only for this exercise.
Mixed-rate payment inputs
Paste at A1.
| ADebt segment | BOpening USD | CAPR percent | DMinimum allocation USD |
|---|---|---|---|
| Cash advance | 300 | 30 | 0 |
| Purchases | 700 | 18 | 40 |
Copy as plain text
Payment rule
Paste at A6.
| AInput | BValue |
|---|---|
| Payment USD | 150 |
| Minimum USD | 40 |
| Excess allocation | Higher-rate debt |
| New interest in this step USD | 0 |
Copy as plain text
1. Step 1: Separate minimum and excess
Separate minimum and excess.
You should see: $40 minimum and $110 excess.
Separate the issuer’s minimum-payment allocation from the general higher-rate-first rule for amounts above the minimum.
2. Step 2: Apply the supplied minimum allocation
Apply the supplied minimum allocation.
You should see: Purchases become $660.
Keep this intermediate result so the final decision can be checked.
3. Step 3: Apply excess to the higher-rate category
Apply excess to the higher-rate category.
You should see: Advance becomes $190.
Keep this intermediate result so the final decision can be checked.
4. Step 4: Reconcile remaining debt
Reconcile remaining debt.
You should see: 660+190=$850, equal to 1000−150.
Keep this intermediate result so the final decision can be checked.
What to finish
A payment-allocation ledger with category balances and a total-debt check.
Watch for this
Applying the higher-rate rule to the minimum without checking the issuer’s treatment.
How can I tell I understand it?
Allocate a payment between minimum and above-minimum portions under specified mixed-rate rules on a new supplied case, with a visible intermediate check and no unsupported real-world promise.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Checked paragraph(a), official interpretation53(a)-1, and paragraph(b): general rule concerns excess above minimum; this section does not prescribe minimum allocation; special deferred-interest/secured-balance provisions exist. The fictional issuer minimum is a supplied assumption and not asserted universal.
Access: Current official regulation and relevant official interpretation read with the web reader on 2026-10-01; no actual account or issuer operation tested.
Reuse: Original mixed-rate case amounts and questions; limited paraphrase of general allocation rule and exceptions, no regulatory examples copied.
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