2-5 CPA Borrowing Money Types of Loans: Variable Interest Rates - Name: * All definitions are informal unless otherwise specified * Credit Card Problem: I spent $1000 in April and only made the minimum payment ($50). The credit card has a 14% APR. How much do I owe to start the month of May? What happens if you don't pay the entire balance of your credit card each month? How does a down payment impact the loan? Loan Payment Formula: Option 1: use this equation when I know the total amount of the loan that I am going to take out, but I don't know my monthly payment STEPS 1) CASASTROS 2) 9)

Credit Card Problem: I spent $1000 in April and only made the minimum payment ($50). The credit card has a 14% APR. How much do I owe to start the month of May? What happens if you don't pay the entire balance of your credit card each month? How does a down payment impact the loan? Loan Payment Formula: Option 1: use this equation when I know the total amount of the loan that I am going to take out, but I don't know my monthly payment STEPS 1) 2) 3) 4) 5) 6) 7) 8) 9)