MATH 1050 credit card assigment Math 1050 Credit Card Debt Assignment You have received your monthly credit

MATH 1050 credit card assigment

Transcribed Image Text:

Math 1050 Credit Card Debt Assignment You have received your monthly credit card statement and must now deal with the financial realities of last month's birthday celebration. While your milestone in years was deserving of a celebration, dealing with the $2000 in credit card charges will require some planning. Your credit card statement lists the APR (Annual Percentage Rate) for your balance to be 14.4%. This is the yearly interest rate the credit 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 will be: Month 1 2 3 4 5 6 The minimum payment required by your credit card 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 off this credit card debt. 7 8 APR 12 1. To begin with, let's check out the plan of only paying the minimum amount due each month. To get a feel for how this will affect the balance, finish filling in the following table using the minimum monthly payment of $25. Round each answer to the nearest cent. 9 10 11 12 Old Balance $2000.00 $1999.00 $1997.99 Name, 0.144 12 Interest $24.00 $23.99 = 0.012 Payment $25.00 MacBook Pro $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 New Balance $1999.00 $1997.99 $25.00 $25.00 $25.00 2. What is the total amount that has been paid to the credit card company at the end of the first year? Math 1050 Credit Card Debt Assignment You have received your monthly credit card statement and must now deal with the financial realities of last month's birthday celebration. While your milestone in years was deserving of a celebration, dealing with the $2000 in credit card charges will require some planning. Your credit card statement lists the APR (Annual Percentage Rate) for your balance to be 14.4%. This is the yearly interest rate the credit 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 will be: Month 1 2 3 4 5 6 The minimum payment required by your credit card 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 off this credit card debt. 7 8 APR 12 1. To begin with, let's check out the plan of only paying the minimum amount due each month. To get a feel for how this will affect the balance, finish filling in the following table using the minimum monthly payment of $25. Round each answer to the nearest cent. 9 10 11 12 Old Balance $2000.00 $1999.00 $1997.99 Name, 0.144 12 Interest $24.00 $23.99 = 0.012 Payment $25.00 MacBook Pro $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 New Balance $1999.00 $1997.99 $25.00 $25.00 $25.00 2. What is the total amount that has been paid to the credit card company at the end of the first year?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 The principal repaid each month is th... View the full answer