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Suppose you open a credit card account and charge $175 to the account on the first of each month to pay for your cable and
Suppose you open a credit card account and charge $175 to the account on the first of each month to pay for your cable and Internet subscription. You plan to pay just the minimum payment each month for the first 6 months (until your summer job starts). The APR is 17.99% and the minimum payment is 4% of the balance. Use Excel to fill in the values in the table below and answer the questions that follow.
Month | Starting Balance | New Purchases | Balance + Purchases | Finance Charge | New Balance | Minimum Payment |
1 | $0 | $175 | $175 | |||
2 | $175 | |||||
3 | $175 | |||||
4 | $175 | |||||
5 | $175 | |||||
6 | $175 | |||||
7 | XXX | XXX | XXX | XXX | XXX |
Express your answers rounded to the nearest cent.
(a) What is the total of the finance charges? $
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