‘Math 1050 Credit Card Debt Assignment Name DOC |ANd WX I You have received your monthly credit card statement and must row deal with the financial realities of last month's birthday celebration. While your milestone in years was deserving of a celebration, dealing withthe $1900 ineredit card charges will equire some planning Your creditcard statement lists the APR (Anrwal Percentage Rate) for your balance to be 13.5%. Thisis 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 willbe: APR _ 0.138 2 = 0.01125 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.Tobegin wit, et’ check out the plan of only paying the irimum amount due each month. To get a feet fr how this wil affect the balance firs filing in the following table using the minimum monthly payment of $25, Month | Old Balance interest Payment ‘New Balance $1900.00 $21.38 $1896.38 $1896.38 o i Fie Whats the fot amount tata been pad othe crt card company a the end ofthe ft year? $300-08h49 bar» aid to the cresit card combany af the 1 frst y DAP 1, g Ine sh A aer, $25 x'Rmorthy 2$300 Nownucheftreataslisanharbeenpadatatneendeihetiven? wl We oratnal olen ce has hour aid off af AM und Det peak, From looking a the new balances over the first year, how many years do you think t will take to pay off the $1900? (This isa quess so there is no wrong answer. Before going on to step 2, write down your best estimate.) $1400» Math 1050 credit Card Debt Assignment nome Socbu Tond wk 2. A formula for calculating the payment, P, required to pay offa debt of amount Din M months with monthly Interest rate i is Di ry Using ths formula, sole forM to determine the number ofmonthsit il tak opay ofthe $1900 credit card debt ‘wth minum monthly peyments of $25. Round the nurbe of moths to two dca paces, (Atach all work fo ths assignment tothe ee aa ignment to th | ( 1900x 0-0 as 41) af 1g90x OONRS oe ae : Ge J 2172-62 moths En (14 0-01N1RS, How ong sti year, rounded othe nearest tenth ofa year? VRQ1A Ny Be yee IQ Wht botnet tin ertindomeenmt peel $43) s te tetal anveunt ate to ned (1.7 BS x172 6% Lf Con a conbang 315-5) 3, How many months will be required to pay off the debt if you pay $80 each month? Round to two decimal places. 86 motly ill | Re beguered, fo Pay Af the del How lrg sts in year, rounded tothe nearest tenth of yar? ALY - 4.15 y sas 12 # wnat ol around tote ct atconpan unde te eyes a? ‘ 2492.60 jy ty tela @meunt oid to oredid cord ( SOK Hees 3432) ‘Horny mnt eae puff ie det yop 575 ea mh? Rann ial es 30 marth sll he reqyused Fe poy A} da deb a ye fou, FR toch How longs thin yar, rounded tothe nearest tenth ofa year? Bo = 25 year \Whotis the total amount pld to the cet card company, rounded to the nearest dolar? §arso i the th (+ 26vah 39960 ¢ had to Ae credit cord ceombary5. How large would your monthly payment have to be inorder to pay off your debt in 12 months? Round up to the next nearest cent. $17 0-15 would te yaw monthly, poyment bie orble tpay of your dhe LA |Qmeth. 4 \What isthe total amount pad othe credit card company, rounded to the nearest dolar? $2041.60 15 He tal amounk bald ty he creditcard compen o ( 170-15x12 2444 40) 6. Whatisthe best es for paying of the $1900? Why? Fg. dt $1900 in rod iv the Yaak oplzen_ Pay 4 7 lw it. $F el heuwh gal od 4 duke quider wh by inlet hati wets? Wh? i the wow glan in jd pay eq mumimue dink. t2¢-o0 far mardhy ; Dene : Sf mover ath ts deny gooy Cobh ha caval poyieg minimum dhe bet vat shoud youd you cant fro mak the payments required bythe best an? Th welll a the hand bbion., dy shud hoy 75-4010. wend lhe) te yor £75.20 a magn Pau wey tied Fader grab, Unser Hated udlA indouk 7. What are two things that the average consume can ean by completing this asignment? L stay out of bt te a herl jo oul of dabk quider. A | ay ms af Jag muninun Ave, I jo ay PPL YU Can GelMs Ine 1900x0-0185 4) aS Me ao 59 hat ie oo Ay 86 man Pz Mon xoonas 1-C+ O-onagy"* shires