For this part of the case study, assume you have a credit card with a 19.25% APR that is

compounded monthly. In addition, assume that you have just made a $1000 purchase on this

card. In this case study, you will examine the different ways to pay off this purchase.

1. Different monthly payments

a. First, suppose you make $30 payments per month on the card. Create a

spreadsheet which gives the amortization table in this scenario and use it to find

how long it will take to pay off the balance and how much interest you will pay.

b. Larger payments per month mean you can pay off the debt faster. Determine

how fast you can pay off the credit card with the monthly payments in the table

below. (Recall that to make these analyses exact, you might need to use a

different payment amount for the last month. Here, we just want to get an

approximate idea of what will happen with different payment amounts, so we will assume that all of the payments are the samethis means that the

approximate interest paid will be a little bit of an overestimate but should still

give a reasonably close number.)

Monthly :

Payment:

Months to Clear Debt (round

to the next month):

Approximate Interest Paid (use the time

from the middle column of this table):