Chapter 4 Name Date Integrated Project 4 Directions Read through the entire project before you begin doing any work Maurice has two credit cards, each with a balance. Maurice realizes that he is in a dangerous financial position and has decided to stop using his credit cards. His plan is to pay the minimum balance cach month for both cards and commits to finding a way to get out of debt quicker Given below are the balances for each card on June 1 and their terms and conditions statements. CreditFirst: $967 Sun Money card: $7,312 Terms and Conditions for Credit First Annual percentage rate (APR) for new purchases 16.5%, using monthly periodic rate Other ARPS Cash Advance: 21.996 Balance Transfer: 15.6% Penalty rate: 22.9%. See explanation below. Variable-rate information Your ARP for purchase transactions may vary. The rate is determined monthly by adding 5.9% to the Prime Rate Grace period for repayment of balances for purchases 25 days on average Method for computing the balance for purchases Adjusted balance method 30 day billing cycle Annual fees $50 Minimum Finance charge 2% or SL 50, whichever is greater Transaction fee for cash advances: 3% of amount received Balance transfer fee: 2.5% of the amount transferred Late payment fee: $25 Over-the-credit-limit fee: $35 Explanation of penalty: If your payment arrives more than ten days late, the penalty rate applies until further notice **The Prime Rate used to determine your APR is the rate published in the Wall Street Journal on the 10th day of the prior month Terms and Conditions for Sun Money Annual percentage rate (APR) for new purchases 15.2% using daily periodic rate Other ARPs I Cash Advance 1849 Balance Transfer: 15.6% Penalty rate: 23.9%. See explanation below Variable-rate information Your ARP for purchase transactions may vary The rate is determined monthly by adding 5.9% to the Prime Rate Grace period for repayment of balances for purchases 125 days on average Method for computing the balance for purchases Adjusted Balance Method 30 day billi Annual fees Minimum Finance charge 3% or $2.50, whiches Transaction fee for cash advances: 2.5% of amount received Balance transfer fee: 2.5% of the amount transferred Late payment fee: 529 Over-the-credit-Limit fee: $35 Explanation of penalty: If your payment arrives more than ten days late the penalty rate applies until further notice **The Prime Rate used to determine your APR is the mate published in the Wall Street Journal on the oth day of the prior month TSO Step Three Maurice really wants to have the balance paid within 16 months, so he adjusts his budget and finds an additional $200 to apply to his credit card balance each month. He also received a promotion at work, which gives him another $60 each month to apply toward paying off his debt. He plans to pay $500 each month to One Finance. 18. How much of that $500 will go toward each month? Explain your answer, 19. Can he expect to have the debt paid off in 16 months? Explain your answer. 20. What might be a reason he wanted to pay the balance off within 16 months? Chapter 4 Name Date Integrated Project 4 Directions Read through the entire project before you begin doing any work Maurice has two credit cards, each with a balance. Maurice realizes that he is in a dangerous financial position and has decided to stop using his credit cards. His plan is to pay the minimum balance cach month for both cards and commits to finding a way to get out of debt quicker Given below are the balances for each card on June 1 and their terms and conditions statements. CreditFirst: $967 Sun Money card: $7,312 Terms and Conditions for Credit First Annual percentage rate (APR) for new purchases 16.5%, using monthly periodic rate Other ARPS Cash Advance: 21.996 Balance Transfer: 15.6% Penalty rate: 22.9%. See explanation below. Variable-rate information Your ARP for purchase transactions may vary. The rate is determined monthly by adding 5.9% to the Prime Rate Grace period for repayment of balances for purchases 25 days on average Method for computing the balance for purchases Adjusted balance method 30 day billing cycle Annual fees $50 Minimum Finance charge 2% or SL 50, whichever is greater Transaction fee for cash advances: 3% of amount received Balance transfer fee: 2.5% of the amount transferred Late payment fee: $25 Over-the-credit-limit fee: $35 Explanation of penalty: If your payment arrives more than ten days late, the penalty rate applies until further notice **The Prime Rate used to determine your APR is the rate published in the Wall Street Journal on the 10th day of the prior month Terms and Conditions for Sun Money Annual percentage rate (APR) for new purchases 15.2% using daily periodic rate Other ARPs I Cash Advance 1849 Balance Transfer: 15.6% Penalty rate: 23.9%. See explanation below Variable-rate information Your ARP for purchase transactions may vary The rate is determined monthly by adding 5.9% to the Prime Rate Grace period for repayment of balances for purchases 125 days on average Method for computing the balance for purchases Adjusted Balance Method 30 day billi Annual fees Minimum Finance charge 3% or $2.50, whiches Transaction fee for cash advances: 2.5% of amount received Balance transfer fee: 2.5% of the amount transferred Late payment fee: 529 Over-the-credit-Limit fee: $35 Explanation of penalty: If your payment arrives more than ten days late the penalty rate applies until further notice **The Prime Rate used to determine your APR is the mate published in the Wall Street Journal on the oth day of the prior month TSO Step Three Maurice really wants to have the balance paid within 16 months, so he adjusts his budget and finds an additional $200 to apply to his credit card balance each month. He also received a promotion at work, which gives him another $60 each month to apply toward paying off his debt. He plans to pay $500 each month to One Finance. 18. How much of that $500 will go toward each month? Explain your answer, 19. Can he expect to have the debt paid off in 16 months? Explain your answer. 20. What might be a reason he wanted to pay the balance off within 16 months