Name ______________________________ Date _______________________

Calculating Credit Card Interest

Joe has just received his first credit card and decided to use it to pay for part of his tuition for school. He is paying 23% APR interest on his credit card. He decided he can afford to pay $50 per month to pay off
his debt. He paid a total of $2,150 for his tuition. Calculate how much interest he will pay in six months if he continues to pay $50 per month.

Billing cycle is 30 days. Finance Charge is 23% APR. Use 360 days per year.

Formula: Balance * Interest Rate * Billing Cycle/360

Example: 2,000 * .20 * 30/360 = 33.33 Interest = 33.33

2,000 + 33.33 = 2,033.33 New Balance = 2,033.33
2,033.33 – 75.00 = 1,958.33 End of Month Balance = 1,958.33

Balance +
Interest =
End of
Interest New New Month
Month Balance * Rate * Time = Interest Balance Balance - Payment = Balance

September ________ ________ ________ ________ ________ ________ ________ _____________

October ________ ________ ________ ________ ________ ________ ________ _____________
November ________ ________ ________ ________ ________ ________ ________ _____________
December ________ ________ ________ ________ ________ ________ ________ _____________
January ________ ________ ________ ________ ________ ________ ________ _____________
February ________ ________ ________ ________ ________ ________ ________ _____________

Amount Still Owed ____________________ Total Paid ____________________ Total Interest ____________________

Suzy has just received her first credit card and decided to use it to pay for her books for college. She is paying 20% APR interest on her credit card. She decided she can
afford to pay $75 a month to pay off her credit card. She paid a total of $1,000 for her books. Calculate how much she will still owe for her books, how much she paid in
the year, and how much interest she will pay.

Balance +
Interest = End of
 Interest New New Month
Month Balance * Rate * Time = Interest Balance Balance - Payment = Balance

June ________ ________ ________ ________ ________ ________ ________ _____________

July ________ ________ ________ ________ ________ ________ ________ _____________
August ________ ________ ________ ________ ________ ________ ________ _____________
September ________ ________ ________ ________ ________ ________ ________ _____________
October ________ ________ ________ ________ ________ ________ ________ _____________
November ________ ________ ________ ________ ________ ________ ________ _____________
December ________ ________ ________ ________ ________ ________ ________ _____________
January ________ ________ ________ ________ ________ ________ ________ _____________
February ________ ________ ________ ________ ________ ________ ________ _____________
March ________ ________ ________ ________ ________ ________ ________ _____________
April ________ ________ ________ ________ ________ ________ ________ _____________
May ________ ________ ________ ________ ________ ________ ________ _____________

Amount Still Owed ____________________ Total Paid ____________________ Total Interest ____________________

Joe
Balance Interest Rate Billing Cycle/360 Interest Balance +Interest New Balance Payment End of balance
2150 0.23 30/360 41.20 _ 2150 + 41.20 2191 50 2141
2141
Suzy
Balance Interest Rate Billing Cycle/360 Interest Balance +Interest New Balance Payment End of balance