The Cost Of Credit Card Usage Worksheet Review Ch. 5 Of Focus On Personal Finance, Your Week 3 Khan Academy Video, And Your IGrad Credit Card Module For Support In Completing This Assignment. 1. Calculate The Following Using The Bankrate Calculator. You May Use The Bankrate Calculator For The Remainder Of The Questions On This Worksheet Credit Card Balance

 

The Cost of Credit Card Usage Worksheet Review Ch. 5 of Focus on Personal Finance, your Week 3 Khan Academy Video, and your iGrad Credit Card Module for support in completing this assignment. 1. Calculate the following using the Bankrate calculator. You may use the Bankrate calculator for the remainder of the questions on this worksheet. Credit Card Balance Interest Rate Minimum/Fixed Payment Number of Months to Pay in Full Total Interest Paid Impact of Interest Rates $5,000 13% Minimum (interest+1% of balance) $5,000 18% Minimum (interest+1% of balance) Impact of Payment Amounts $2,000 15% Minimum (interest+1% of balance) $2,000 15% Fixed $100 2. 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? 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? 4. 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? 5. Assume you have a friend who is making the minimum monthly payments on a credit card. Your friend asks your thoughts on what he or she is doing. Based on these calculations and what you have learned, how would you advise your friend about making only minimum payments? Your response should be at least 100 words.