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You have an unpaid credit card debt of $461. The interest rate you carry is 17.55%. Make a table showing Payment Number, Monthly Payment, Balance
You have an unpaid credit card debt of $461. The interest rate you carry is 17.55%. Make a table showing Payment Number, Monthly Payment, Balance Less Payment, Plus Interest, and Remaining Balance. (A) Assuming no extra charges, how long will it take to pay off the loan if you make the minimum payment of $25 per month? (B) Would it take exactly half the time to pay off the credit card debt if you doubled up on payments each month? If not, how much sooner do you pay the debt off in this case when compared to the first case? (Hint: Cut and paste work from (A) but change the amount that you are paying per month to $50 based on this problem.) (C) Determine the amount of interest paid in (A). Determine the amount of interest paid in (B). Determine how much you save in interest when you double up on the payments. (Hint: Add up the amounts in the Plus Interest columns for (A) and then add up the same for (B) The difference between those values tells you how much interest you saved.)
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