[Math 1050 Credit Card Debt Assignment name _Babiker Abdalla _ You have received your monthly credit card statement and must now deal withthe financial realities of last month's birthday celebration. While our milestone in years was deserving ofa celebration, dealing with the $2000 incre card charges wll require some planning. ‘Your creit card statement ists the APR (Annual Percentage Rate) for your balance to be 14.4%, This isthe yearty interest ate the ret 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 wil be: APR _0.144 BR 2 012 The minimum payment required by your creditcard 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 ofthis credit card debt 1. To begin with e's checkout the plan of only paying the minimum amount due each month. To get fel for how this wil affect the balance nish filing in the following table using the minimum monthly payment of $25. Round each answer tothe nearest cent. Month | Oia Balance interest Payment New Balance 1 2000.00, $24.00 $25.00 $1999.00, 2 $1559.00 $23.59 $25.00 $1997.99, 3 3195799 | $29. 98 $25.00 247 4 91 | Jaz-ab 25.00 1aaes = 9Z soy a I 2500 18 1499. 6 3+ [$2500 1442. T [423 3f | — 143. 75 2 a [___ $25.00) AA bs 9 $25.00 3 10) $25.00 A tierde at $25.00 flags. 12 $25.00 #498718 2. What isthe total amount that has been pald tothe credit ard company atthe end of the frst year? 12 (49) = (Pee 3. How much ofthe orginal balance has been pad of atthe end ofthe fist year? fire” ¢ (qgT 8a $ 12-82Math 1050 Credit Card Debt Assignment Name Qaiarer AAX\\a, 4. From looking atthe new balances over the fst year, how many years do you think it will tke to payoff the $20002 (This isa guess 20 there is no wrong answer. Before moving on, write down your best estimate.) ATR 10 VES or Me 5. formula for calculating the payment, P, required to pay ofa debt of amount Din Months with monthly Interest ate fs oes Di veo may” D2 wee Solve this formula for M , where M isthe number of months it will take to pay offa debt D. Attach all your workin solving for M to the end ofthis assignment. fees cde ces eee Jar - - n(iei ) 6. Use your formula for Mf tofln the following table forthe given values of P, using D = $2000.00 and #= 0.012. ‘Attach all your work tothe end of this assignment. oe 25m [seco [50 tReunotweSedmal pers) 164,65 | sy. ge | 32-33 {Round to nearesttenthot yor) ws [yer | at ootocarcncaes OY |S brlb-as | 274 |g 2ue-1 7. (a) How large would your monthly payment have tobe inorder to pay off your debt in 12 months? Round up tothe next nearest cent. p= $ 14-4 \ tee te Rat foe wa {(b} What is the total amount paid to the credit card company, rounded tothe nearest dollar? ~papst -{Math 2080 Credit Card Debt Assignment Nome Beige Aadaer 8 Whats the bes plan for paying of the $2000? Why? Atwaihs He est Dia Far payvh CP ime Gree 1 Te PHS TH OE Gu x2 mecTTe eam Your Omsk WAS (ess in Wh eves - 9, Whats the worst plan? Why? A Z LTR eww elem (5 Pan Tre muni paignow Became Oy Lot yy MIME Tor Waares © om in he Nowy emnionpy 10, what shout you do you cant afford to make the payments required bythe bes plan? © wast \ com “Soh woth eee cei MOMMA ean TR, GS TREE BOY The WRe vA Ronni = 4 wit pay © 111 What are two things that the average consumer can learn by completing this assignment? LT TAME Te minimum pamoute endo up coe ue “Sus wwe [Te ony nue =