‘Math 1050 Credit Card Debt Assignment Name ‘You have received your monthly creditcard statement and must now deal withthe financial realities of last month birthday celebration, While your milestone in years was deserving ofa celebration, dealing with the $1900 in credit card charges will require some planning stementlists the APR (Annual Percentage Rate) for your balance to be 13.5%, This s the yearly Wz interest due on your balance. The credit card company Your credit card stat eon credit card charges will be: interest rate the credit card company uses in calculating compounds interest monthly. Your monthly interest rat Ei Oii25 Tome) ‘The minimum payment required by your credit card company is $25/month. Assuming that you do not make any new 'e following questions to help you determine the best plan for paying off this credit charges to your account, answer th card debt. unt due each month, To get a feel for how 41. To begin with, let's check out the plan of only paying the minimum amo le using the minimum monthly payment of $25. this wll affect the balance, finish filling in the following ta [Month [Old Balance interest Payment | NewBalance | 1 $1900.00 $21.38 $25.00 $1896.38 fie $1896.38 g | 3 dpioq2 Hh B | 4 1684.01 z 5 Pipes. Zo \ 6 #1881 4 E 7 Tiesa-uH {2 f 3 | Disas. +e 9 | Wise. eH 2 to | WH lees. 8B Pe 11 [8 16. p> \# 22_| Wigs. 62 [¥ What is the total amount that has been paid to the credit card company at the end of the frst year? \Zmontns x 25 = Boe How much of the original balance has been paid off at the end of the first year? 46.28 1400 - 19.53 = From looking at the new balances over the first year, how many years do you think twill take to payoff the $1900? 2, write down your best estimate.) (This isa guess so there is no wrong answer. Before going on to step Estimate c& HO years \ eeeName _< ne Math 1050 Credit Card Debt Assignment 2. Aformula for calculating the payment, P., required to pay off a debt of amount Din M months with monthly interest rate fis Dei x(n" Using this formula, solve for M_to determine the number of months it will take to pay off the $1900 credit card debt with minimum monthly payments of $25. Round the number of months to two decimal places. (Attach all work for this assignment to the end.) H How long is this in years, rounded to the nearest tenth of a year? F2lementns/ : 7 Lmootns 4.88 yr What is the total amount paid to the credit card company, rounded to the nearest dollar? A2Z.emotns x 4 be required to pay off the debt if you pay $50 each month? Round to two decimal places. 3. How many months He nlos HA. Bo moths How long is this in years, rounded to the nearest tenth of a year? Bee 4 ‘What is the total amount paid to the credit card company, rounded to the nearest dollar? WSO /yaetem = (2143 ee 4, How many months will be required to pay off the debt if you pay $75 each month? Round to two decimal places. MH In(o-795 ) 20 montns = 24.99 AGUS 2 5) \eatenmneas Svoonde” How long is this in years, rounded to the nearest tenth of a year? aa . aa (an = 6: Sas: What is the total amount paid to the credit card company, rounded to the nearest dollar? Gs x 24,49 = Han, 25 7Name ‘Math 1050 Credit Card Debt Assignment yenext ‘thave to be in order to pay off your debt in 12 months? Round up to th 5. How large would your monthly payment nearest cent. Pe Hiac What is the total amount paid to the credit card company, rounded to the nearest dollar? 10.5 / 6, What isthe best plan for paying off the $1900? Why? Me best plan t= pey off Hie best plan te poy off HI she debt Inthe (2 monty by increasiny re ammount y yan the Inipimeom. What isthe worst plan? Why? he userst plan is te mainrecin Nout not dnty be in debbifer fer lenge tain) wee emore: GUE a (nterest What should you do if you cannot afford to make the payments required by the best plan? Pay Yre most thet you Can off 7. What are two things that the average consumer can learn by completing this assignment? i only! eby Hhings het you can afford / able to poy of aviaely, li. Avoid’ monthly Payment options oniess you Qbeso lor) Noe +p— also avoid minimem payment Ave po IEC0 \n (0. e oy