Math 1050 Credit Card Debt Assignment nome Uma _'D) 104200N_ You have received your monthly credit card statement and must now deal with the financial realities of last month’s birthday celebration. While your milestone in years was deserving of a celebration, dealing withthe $1900 in credit card charges will require some planning, Your credit card statement lists the APR (Annual Percentage Rate) for your balance to be 13.5%. Tis is the yearly interest rate the credit card company uses in calculating interest due on your balance. The credit card company ‘compounds interest monthly. Your monthly interest rate on credit card charges will be: ‘The minimum payment required by your credit card company is $25/month. Assuming that you do not make any new charges 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 ilingin the following table using the minimum mgnthly payment of $25: (PL OONRS = —~ + baler 9-924 = ue ih |__ 01d Batance terest Payment New Balance “essen oo a38 3250 $1896.38 2 $1896.38 21.3 $25 06 5992.9 228 $25 06 $18 noua t ae 21.25 25-00 $.1885-25 i 5 [8 sis 2s aha} 25-08 $188) ue coil 6 gd 188) ye 27 25-06 i 1877. a LAN eres $1299- G3 U2 00. $33- soy fi ¢ 74 uw Up pss ae $869.52 21. 208 —Ws\onl /.08 <0 aL $6 0.95 25.00 12 3857-3) 20.50 a FRA wowtly weet > ur Whats the total amount that has been paid tothe cx 425.00 x 2!) = B00 | 28:00 multiply ict lame * (0-025) = wwilldyuleatst ard company at the end of the first year? How much of the original balance has been paid off a the end ofthe first year? eco sc. = 46.25 |