You have a credit card with 18.5% APR. You currently have a balance of $3750 on the card and decide to stop purchases on the card and pay it off. You will pay $160 per month until the loan is paid off. The finance charge is calculated by current balance method. This means you take the APR divided by 12 times (the current balance minus the payment plus any purchases).

Create a chart in Excel with the following headings and drag it down until the loan is paid off. Adjusting as necessary

Month Payment Purchases Finance Charge New Balance

How long did it take you to pay off the loan? What is the total interest you paid on this loan?