$C13$

$5$ Below you will examine paying off credit card debt with the minimum payment. Use the information below to complete the problem.

Discover both how much is paid and how long it takes to pay off a $$2125$ credit card debt paying the minimum payment which is the maximum of $2\%$ of the Current Balance or a fixed amount of $$25.$ The credit card has $19\%$ APR compounded monthly. Find out how long it takes to pay this off and how much will be paid total. Assume payments are made on the current balance at the beginning of each period $($month$),$ before interest is accrued and assuming that the card is not being used for any additional charges.

$\backslash$table$[[10,,],[11,,],[12,,],[13,$APR,$],[14,$Starting Balance,$],[15,$Payments per Year,$],[16,$Minimum Payment$],[17,$Percentage of the Current,$],[18,$Fixed Minimum,$],[19,,]]$

$5$ These are the starting parameters, use cell references to these values in your formulas in part $5$b$.$ Enter the appropriate values from above.

Format all percentages as Percentages to two decimal places, all currency values as Currency to two decimal places, and Payments per Year as Number to zero decimal places.

$21$

$5$b Below enter Excel formulas with cell references and appropriate builtin Excel functions to calculate the Current Balance, Payment, Balance After Payment, and Interest for each Month. You should continue to fill in the rows until you reach a balance of $0.$ Note that the Current Balance for Month $1$ is completed for you.

$\frac{22}{23}$

Format all cells as Currency with $2$ decimal places.

$\backslash$table$[[24,$Month,$\backslash$table$[[$Current$],[$Balance$]],\backslash$table$[[$Payment$],[$see note at side$]],\backslash$table$[[$Balance After$],[$Payment$]],\backslash$table$[[$Interest for$],[$this month.$]]],[25,1,$Complete $5$a$,,,],[26,2,,,,],[27,3,,,,],[28,4,,,,],[29,5,,,,],[30,6,,,,],[31,7,,,,],[32,8,,,,],[33,9,,,,],[34,10,,,,],[35,11,,,,],[36,12,,,,],[37,13,,,,],[38,14,,,,],[39,15,,,,],[40,16,,,,],[41,17,,,,],[42,18,,,,],[43,19,,,,],[44,20,,,,],[45,21,,,,],[46,22,,,,],[47,23,,,,],[48,24,,,,],[49,25,,,,],[,,,,,]]$

$5C$ Use the table from $5b$ to calculate the Number of Years to Pay Off $($based on the number of Months found$),$ Total Amount Paid, and Amount of Total Interest Paid.

Format the Number of Years to Pay Off as a Number with $2$ decimal places and the Total Amount Paid and Amount of Total Interest Paid as Currency with $2$ decimal places.

Note: The amount you pay at the start of the month is the larger of the fixed minimum payment $($D$18)$ and the percentage $($D$17)$ of the current balance $($column B$).$ You may use the $=$ MIN$()$ function to have Excel do this or manually switch formulas in the table. The final payment must not exceed the balance.