Homer XL, Pena eee cote ‘ard statement and must now deal with the financial realities of last month’s ‘Your milestone in years was deservi with the $2000 in credit card charges will require some planning. leserving of a celebration, dealing with the S: ‘Math 1050 Credit Card Debt Assignment Name. ote wae “tatement lst the APR (Annual Percentage Rate) for your balance to be 14.5%. Ths i the yearly capoeede re rest card company uses in calculating interest due on your balance. The credit card company Pounds interest monthly. Your monthly interest rate on credit card charges wl be: 45 129 roc 12, = 0.012083, ‘The minimum payment required by your creditcard company i $25/month. Assuming that you do not make any new cues ‘to your account, answer the following questions to help you determine the best plan for paying off this credit, card debt. 1. To begin with, let's check out the plan of only paying the minimum amount due each month. To get a feel for how ‘this will affect the balance, finish fling in the following table using the minimum monthly payment of $25. Month [Old Balance Interest Payment ‘New Balance $2000.00 $24.17 $25.00 $1999.17 $1999.17 = bs $ bo + = a9Ze 92. <2 5 of 2EF 9 30.% a> Dt. What isthe total amount that has been paid to the creditcard company at the end of the frst year? 2S x12 = 300 # 300 How much of the original balance has been paid off at the end of the first year? 3009 -178).30 = (9.70 #19. 7 From looking at the new balances over the first year, how many years do you think it will take to pay off the $2000? (This is a guess so there is no wrong answer. Before fomgonsoste 2, write down your best estimate.) Corte ‘dere pte ed the boloac o de pow dod tn He Te eee Iyjon alo (8 yeasAssignment Name ee eo credit card Debt ox for creating the payment, P, required to pay off a debt ‘ofamount Din M months with monthly Perest ate i is D:i P= (+ sing ths formula, sve for M to determine the aurnber of months it wil take to payoff the $2000 credit card debt wath minimum montly payments of $25, Roy he number of months to two decimal laces (Attach all work for this assignment to the end.) it = et a bey hae Nie Pe -Pr S4 Py month How longs this in years, rounded tothe nearest tenth ofa Yea"? 64 guys \wnaziTToa aroun pt othe ced cad company, rounded tothe nearest dlr? §4.98- 50 e445 ‘a: tiow many months willbe required to payoff the debt you pay $75 each month? Round to wo decimal places. fo hy = 32" nd F300) 3239 pombe How long is this in years, rounded to the nearest tenth of a year? ws < eee Lagos. ‘What is the total amount paid to the ‘credit card company, rounded to the nearest dollar? B23 7S ste)fos0 Credit Card Debt Assignment fow large would your mont Fm aes thly payment have to be in order to pay off your debt in 12 months? Round up to the next 22900¢ imtaye = 139.94 ‘What isthe total amount paid to the credit card company, rounded to the nearest dollar? 1$9.9€a12 = iho se aoe (61 ‘6. What is the best plan for paying off the $2000? Why? Lahink te bests poy of $190 one, bere ft tolas the lect bere, eg Manet te or oAtlg tj Hanne ‘What should you do if you cannot afford to make the payments required by the best plan? Whe you eer fo fel arotler Credit epaey's glam sy et introt yote etch relh 7. What are two things that the average consumer can learn by completing this assignment? © rhe cde card will char yar oot with & (idle APR : page a er pele tel ere: ee