Pencoe en charges were B2 X f* Month A B C D E F G S T T U H 1 J L M N 0 P 0 R Assure you have a $3,500 balance on a credit card with a 14.5% APR. You are only able to make $150 payments each month and you get an offer for a new credit card which will give you 0% on transferred balances for 6 months and then switch to a 16.7% rate. They will charge you 3% on any balance you transfer. Interest New Balance a.) To determine how long it will take you to pay off the current card, complete the spreadsheet by computing the balance, interest, and new balance each month. Remember that periodic interest is charged on the balance at the beginning of each month using the periodic interest rate. 1 APR: 2 3 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 14.50% Month Balance Payment 1 $ 3,500.00 $ 150.00 2 $ 150.00 3 $ 150.00 4 $ 150.00 5 $ 150.00 6 $ 150.00 7 $ 150.00 8 $ 150.00 9 $ 150.00 10 $ 150.00 11 $ 150.00 12 $ 150.00 13 $ 150.00 14 $ 150.00 15 $ 150.00 16 $ 150.00 17 $ 150.00 18 $ 150.00 19 $ 150.00 20 $ 150.00 21 $ 150.00 22 $ 150.00 23 $ 150.00 24 $ 150.00 25 $ 150.00 26 $ 150.00 27 $ 150.00 28 $ 150.00 29 $ 150.00 30 $ 150.00 b.) How many months will it take to pay off this card? Answer the first month that has a negative ending balance. Part b: Part : c.) How much will you spend in total to pay off this card7 Note that you will be charged interest in the last month but you will not owe a full $150 Pencoe en charges were B2 X f* Month A B C D E F G S T T U H 1 J L M N 0 P 0 R Assure you have a $3,500 balance on a credit card with a 14.5% APR. You are only able to make $150 payments each month and you get an offer for a new credit card which will give you 0% on transferred balances for 6 months and then switch to a 16.7% rate. They will charge you 3% on any balance you transfer. Interest New Balance a.) To determine how long it will take you to pay off the current card, complete the spreadsheet by computing the balance, interest, and new balance each month. Remember that periodic interest is charged on the balance at the beginning of each month using the periodic interest rate. 1 APR: 2 3 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 14.50% Month Balance Payment 1 $ 3,500.00 $ 150.00 2 $ 150.00 3 $ 150.00 4 $ 150.00 5 $ 150.00 6 $ 150.00 7 $ 150.00 8 $ 150.00 9 $ 150.00 10 $ 150.00 11 $ 150.00 12 $ 150.00 13 $ 150.00 14 $ 150.00 15 $ 150.00 16 $ 150.00 17 $ 150.00 18 $ 150.00 19 $ 150.00 20 $ 150.00 21 $ 150.00 22 $ 150.00 23 $ 150.00 24 $ 150.00 25 $ 150.00 26 $ 150.00 27 $ 150.00 28 $ 150.00 29 $ 150.00 30 $ 150.00 b.) How many months will it take to pay off this card? Answer the first month that has a negative ending balance. Part b: Part : c.) How much will you spend in total to pay off this card7 Note that you will be charged interest in the last month but you will not owe a full $150
