CRO Name: Section: Credit Card activity: Bills, Bills, Bills (20 points) In this activity, we are going to explore how payments impact your credit card balance and how this might affect your choices when making monthly credit card payments. Directions: Answer the following questions. You may work in pairs in class. Show all of your work. You must turn in your work on the due date. You will also upload your Excel sheet to the "Credit Card" assignment link in Chapter 4 on D2L. Activity Scenario: Last year was a hard year, and you have maxed out one of your credit cards that had a $1000 limit. Since graduation, you have found a good paying job, and you have decided to get serious about paying off this debt and improving your credit. From the time since you maxed out the card, you have not made any payments and you now owe $1383. Your minimum payment is of your balance, or $20, whichever is higher. The APR on the card is 12%, and you are not going to use the card again until the balance is paid in full. Assume you always make your payments on the first of the month, and the billing cycle is from the first to the last day of the month. 1. At this time in your life, you are only able to make the minimum payments. Open this Excel spreadsheet. Continue the table until the balance on the credit card is zero. (End of Month Balance) Note: you will need to manually adjust the last payment. a. Determine how long it will take you to pay off the credit card debt if you make the minimum payment each month. (1) b. How much will you pay in interest over the course of your credit card debt? (total interest on the original $1000 spent) (1) C. What percent of the original $1000 borrowed was spent on interest? Show your work here. (2) 2. Credit card companies only require you to pay a minimum, but you have the option to pay more each month on your balance. Find the sheet labeled "$100 PMT." (Look at the bottom of the spreadsheet). a. Determine how long it would take you to pay off the debt if you make $100 payments each month. Note: you will have to adjust the last payment. (1) b. How much will you pay in interest over the course of your debt? (total interest on the original $1000 spent) (1) c. What percent of the original $1000 borrowed was spent on interest? Show work. (2)