Calculate Annual Profit of Credit Card Portfolio
Capital OneData Scientist · HR Screen
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Evaluates annual profit calculation for a credit-card portfolio with monthly and annual revenue and cost components. Strong answers annualize figures, compute per-card profit, and scale to portfolio profit.
Scenario
Existing portfolio of 500,000 active credit-card customers with multiple revenue and cost streams.
Question
Given 500,000 active cards that each generate $79 annual fee, $2 other revenue per card per year, $15 interest revenue per card per month, and incur $5 fraud-prevention cost per card per month, calculate the portfolio’s annual profit.
Hints
Convert monthly figures to annual, sum revenues, subtract costs.
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