You have a credit card with a credit limit of $500.00, your purchases include: ($65.00 with tax and tip), $30.00, $345.00 - charged a total of f $440.00

Vital Credit Card Information*:  No annual fee  Variable 27.24% APR based on prime rate**  Late payment fee: up to $40.00

1) The minimum payment is $10 each month. If you pay that amount each month, are never late with a payment, and do not charge anything further on the card, how long will it take you to pay off the $440.00 balance? How much money will you actually have spent to pay off your $440.00 balance?

2) Assuming that you pay $20.00 each month, are never late with a payment, and do not charge anything further on the card, how long will it take you to pay off the $440.00 balance? How much money will you actually have spent to pay off your $440.00 balance?

3) Assuming you pay $50.00 per month, are never late with a payment, and do not charge anything further on the card, how long will it take you to pay off the $440.00 balance? How much money will you actually have spent to pay off your $440.00 balance?

4) You got the card in September of your freshman year, so your first billing cycle was for September, second for October, etc. Assuming the “ideal” situation (you make the same payment each month, incur no late fees, make no new charges on the card, and you graduate on time without any delays), what is the minimum amount you would have to pay per month to pay off the credit card by graduation [be careful when figuring out the time between getting the card and graduation]? Round your answer to the nearest cent. You realize that with such a high interest rate, you have gotten in “over your head” with your credit card, and decide that you’re going to outsmart the credit card company. Instead of paying their interest rate, you decide to go to your bank and get a loan to pay off your card. At this point, the balance on the card is right around $500.00 (with interest, etc.), so you ask your bank for a loan for $500.00 to pay off your credit card. The bank will lend you the money at a 12.5% interest rate. You pay off the card with the loan, and then begin making monthly payments to the bank instead.

5) If you pay $10 per month, how long will it take you to pay off the loan? How much will you have paid? 6) (9 points) If you pay $20 per month, how long will it take you to pay off the loan? How much will you have paid?

7) If you pay $50 per month, how long will it take you to pay off the loan? How much will you have paid?

8) Go back to the amount you found in #4 (minimum payment to pay off by graduation). If you placed that amount of money each month in a savings account that compounded monthly with an APR of 2.8%, how much money would you have in the account at graduation? Round your answer to the nearest dollar