Unit 4 Lesson 10 Portfolio - Give Yourself Credit for Avoiding Credit Problems

You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay $400.00 the
first 2 months and then $200.00 until the bill is paid off. You pay the bill on the due date each month.
1) Finish completing the table showing the decreasing debt. Be sure to first study the example in the
lesson. Round the interest calculations to the nearest cent just once after the combined
multiplication/division. (If the digit to the right of the hundredths digit is 5 or more, round the
hundredths digit up.)
2) How much is your last payment?
3) What is the total amount paid by the time you pay off the credit card? (Add all the payments that
were made.)
4) What was your debt ratio at the beginning? That is, what percent of your credit limit had you used?
(What percent of 3000.00 is 1853.42?) Express your answer as a percent rounded to the hundredths
(there will be 4 digits the answer you fill in below).
The debt ratio is
Month
Princip
al
Interes
t
accrue
d
Payme
nt (on
due
date)

1
$1,853.
42
$23.94

2
$1,477.
36

%.
3

$400.00 $400.00 $200.00 $200.00

$200.00

$200.00

$200.00

Enter
Principal +
Interest
(from
above)

10

Unit 4 Lesson 10 Portfolio - Give Yourself Credit for Avoiding Credit Problems

End-ofmonth
balanc
e

$1,477.
36

$0.00