Questions 2, 3, and 4

Total Interest Credit Card Balance Minimum/Fixed Number of Payment Interest Rate Months to Pay in Paid Full Impact of Interest Rates $5,000 Full-approx 104$4642.85 Minimum (interest+1% of balance) Minimum (interest+1% of balance) 1396 1 months $5,000 18% Full-approx 66 $4736.83 1 months Impact of Payment Amounts $2,000 $1874.92 Minimum (interest+ 1% of balance Fixed $100 Full-aprox 61 1 months 15% $2,000 1596 Full 13 months$0 In the "Impact of Interest Rates" example, a 5% interest rate difference results in how much extra interest paid when making only a required minimum monthly payment equal to the monthly interest, plus 1% of the outstanding balance? 2. 3. In the "Impact of Payment Amounts example, how much total interest would you save by making a fixed payment of $100 per month instead of the required minimum payment equal to the monthly interest, plus 1% of the outstanding balance? How much quicker would you be able to pay off the $2,000 credit card balance by making a fixed payment of $100 each month instead of the required minimum payment? 4