Calculate the following using the Bankrate calculator. You may use the Bankrate calculator for the remainder of the questions on this worksheet.

Credit Card Balance	Interest Rate	Minimum/Fixed Payment	Number of Months to Pay in Full	Total Interest Paid
Impact of Interest Rates
$5,000	13%	Minimum (interest+1% of balance)
$5,000	18%	Minimum (interest+1% of balance)
Impact of Payment Amounts
$2,000	15%	Minimum (interest+1% of balance)
$2,000	15%	Fixed $100

In the Impact of Interest Rates example, a 5% interest rate difference results in how much extra interest paid when making only a required minimum monthly payment equal to the monthly interest, plus 1% of the outstanding balance?

3.In the Impact of Payment Amounts example, how much total interest would you save by making a fixed payment of $100 per month instead of the required minimum payment equal to the monthly interest, plus 1% of the outstanding balance?

How much quicker would you be able to pay off the $2,000 credit card balance by making a fixed payment of $100 each month instead of the required minimum payment?

Assume you have a friend who is making the minimum monthly payments on a credit card. Your friend asks your thoughts on what he or she is doing. Based on these calculations and what you have learned, how would you advise your friend about making only minimum payments? Your response should be at least 100 words.

The chart above looks at paying off a credit card balance and assumes you will not be using it while paying it down. In these minimum payment examples the balance decreases by only 1% each month. Most of us will use credit cards throughout the year, and that means we may carry a balance past the grace period. Assuming you were trying to pay off the balance while still using the card, what actions must you take? Your response should be at least 100 words.

What recommendations would you make in regards to properly managing credit card usage and repayment? Your response should be at least 100 words.

Choosing Between Credit Card Options

Review the Schumer Box information provided below for two credit card options, and then answer the question that follows.

CARD DISCLOSURES
	Credit Card Option A	Credit Card Option B
Annual Percentage Rate (APR) for Purchases and Transfers	24.99%, variable	13.24%, variable
APR for Cash Advances	24.99%, variable	23.24%, variable
Annual Fee	$0	$59
Transfer Fee	3% of balance transferred	$0
Grace Period	20 days	25 days
Late Payment Fee	$25	$35
Rewards Program	No	Yes

Which one of these two card options would you choose for your personal use? Provide support for your decision, considering which three attributes are most important to you and trade-offs that you are willing to accept. Your response should be at least 100 words.