You are beginning college. Your parents and you have decided that you will not get a part-time job. Your tuition, books, dorm room, and meals are covered, but you need $100.00 a month for other expenses. Because you will not have an income, you decide to get a credit card. Your parents agree to make the minimum monthly payment for the nine months (Sept - May) you are in college. When you come home next summer, you will work to pay off the balance of your credit card. You will need to make three equal payments in June, July and August so that you will pay off the entire balance, any interest added in the summer, and your parents. The annual interest rate (APR) on the credit card is 18%. The minimum monthly payment is 5% of any unpaid balance. 1. Hint: You wouldn't pay interest on the first month because it is not a beginning unpaid balance.

You are beginning college. Your parents and you have decided that you will not get a part-time job. Your tuition, books, dorm room, and meals are covered, but you need $100.00 a month for other expenses. Because you will not have an income, you decide to get a credit card. Your parents agree to make the minimum monthly payment for the nine months (Sept - May) you are in college. When you come home next summer, you will work to pay off the balance of your credit card. You will need to make three equal payments in June, July and August so that you will pay off the entire balance, any interest added in the summer, and your parents. The annual interest rate (APR) on the credit card is 18%. The minimum monthly payment is 5% of any unpaid balance. Hint: You wouldn't pay interest on the first month because it is not a beginning unpaid balance