Credit Card Calculator

Part 1

1. Choose a credit card balance between $5,000 and $15,000, using a 16% APR (the current average credit card interest rate)
   1. Choose an estimated minimum monthly payment, greater than $200
   2. How many years will it take to pay off your credit card? Excel will calculate this for you.

Part 2 Keeping all other factors the same, increase your monthly payment, so you are now paying more than the minimum. How many years will it take to pay off your credit card under this scenario? Excel will calculate this for you. Part 3 Compare the length of time it takes to pay off your credit card in Part 1 and Part 2. How much money do you save by paying your card off sooner?

Math201 Week 3 Credit Card Payment Calculator
Paying the minimum payment on a credit card versus paying extra
1. Calculate how long it would take to pay off the credit card balance paying only the minimum payment.
Credit Card Balance	$5,000.00	ENTER an amount between $5,000 and $15,000
Credit Card Interest Rate	16%	Keep this at 16%, the current average interest rate
Minimum Payment Per Month	$250.00	ENTER an estimated minimum monthly payment > $200
Number of years to pay card off	1.95	This will say #DIV/0! Until you enter values into cells B4 and B6
2. Choose any amount over the minimum monthly payment, and determine how long it would take to pay off the credit card balance.
Credit card balance	$5,000.00	ENTER the same credit card balance from above (cell B5)
Credit Card Interest Rate	16%	Keep this at 16%, the current average interest rate
New Monthly Payment	$500.00	ENTER an amount that is greater than the minimum monthly payment from above
Number of years to pay card off	0.90	This will say #DIV/0! Until you enter values into cells B10 and B12