Calculate Annual Profit of Credit Card Portfolio
Overview
This question evaluates financial arithmetic and quantitative reasoning, including the ability to aggregate per-account revenues and costs while maintaining unit consistency across monthly and annual figures.
Capital One
Jul 12, 2025, 6:59 PM
Data Scientist
HR Screen
Statistics & Math
19
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Portfolio Annual Profit Calculation
Context
You manage a portfolio of 500,000 active credit-card accounts. Each active card generates multiple revenue streams and incurs a cost.
Given
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Per card revenue:
- Annual fee: $79 per year
- Other revenue: $2 per year
- Interest revenue: $15 per month
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Per card cost:
- Fraud-prevention cost: $5 per month
Task
Calculate the portfolio’s total annual profit. Show your steps and any assumptions.
Note
Monthly figures must be annualized before summing revenues and subtracting costs.
Solution
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