Calculate Annual Profit of Credit Card Portfolio
Company: Capital One
Role: Data Scientist
Category: Statistics & Math
Difficulty: easy
Interview Round: HR Screen
##### 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.
Quick Answer: 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.
