Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume you have a balance of $1000 on a credit card with an APR of 12%, or 1% per month. You start making monthly
Assume you have a balance of $1000 on a credit card with an APR of 12%, or 1% per month. You start making monthly payments of $200, but at the same time you charge an additional $100 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend the table to show the balance at the end of each month until the debt is paid off. How long does it take to pay off the credit card debt? Fill out the table row by row, and continue until the last full payment. (Round to the nearest cent as needed.) Payment Month 0 2 3 4 $200 $200 $200 $200 Continue until the last full payment. 15 $200 Expenses $100 $100 $100 $100 $100 Interest 0.01 x $1000 $10.00 $9.10 $8.19 $7.27 $6.35 New Balance $1000 $1000-$200+ $100+$10.00 $910.00 $819.10 $727.29 $634.56 $540.91
Step by Step Solution
★★★★★
3.49 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Heres the continuation of the table Month Payment Expenses Interest New Balance 0 200 ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started