‘Math 1050 Credit Card Debt Assignment You have received your renthl credit card statement and must now deal wth the financial realities of last month's birthday celebration. While your milestone in: ‘Wipers sf aeleraton, desing wh $1900 in credit card mcrae ana tatement ss the APR (Anal Percentage ate) for your balance to be 13% This theyety interest rate the creditcard company uses in aluatng interest due on your balance. The credit card compen ‘Compounds interest monthly. Your monthly interest rate on credit card charges will be: : ;- APR _ 0.135 1 ae ona ij EE The minimum payment required by your creditcard company is $25/dnth. Assuming that you do nt any new Charges to your account, answer the following questions to help you determine the best plan for paying off this eredit card debt. : 1. To begin with, let's check out the plan of only paying the minimum amount due each mont {his will affect the balance, finish filing in the following table using the minimum monthly Month Old Balance Interest Payment. 1 $1900.00 ‘$25.00 2 38 3 a 5 6 7 a 8 S 10 11 4 12 } What is the total amount that has been paid to the credit card company at the end of 490-19 = LH) How much of the original balance has been paid off at the end of the first year? 4 1900-0 -*1879-70 = 4 wlp.np , From looking tthe new balances over the fist year, how many years do you think wl (This is a guess so there is no wrong answer. Before going on to step 2, write down. b \p yer“ees re I Tir ‘4, How many months will be required to pay off the debt if you pay $75 each n ihe | 7444 Swiy How long is this in years, rounded to the nearest tenth of a year? OF \wry What is the total amount paid to the credit card company, rounded to the 4 9, DN4on | Mn cet bi MINIMUM alan On 4 next UF monthly payment have to be in order to pay off your debt in 12 months? Round up to the 5 that the average consumer: TT P- a vila) (i nga) 7 to || MONE. Thy Would OMOU dof Ade ANd Alot In iVING +95) Kone. Mould take Hit OND ROOM: IN ONG More Ou cannot afford to make the payments required by the best plan? i iNet aordeble ‘can learn by completing this assignment? Onde Np CAN Nokes ti 1 hoynd Ne NY. Crate Dand wild be“Oe “Neale ul 40> Man(L lo) “Ln ( In BD NLM - GE Se 4: (QU) = Ln [ = pile