You have just received a new credit card and plan to use it to make a $800 purchase. Use an excel spreadsheet template to develop a repayment schedule assuming that you make only the minimum payments due each month until the balance is paid off.

Credit Card Terms: Payments can be calculated using the following information: Assume you made your purchase on January 1st and the first payment was due on February 1st, 2022. For simplicity, assume that all months are 1/12 of a year (for interest calculations). Further, assume that interest begins to accrue on February 1st for credit card purchases Your new credit card charges the following fees: 6% APR on purchases-- for simplicity we will assume a fixed rate. credit card requires a minimum payment of 3% of the outstanding balance or $25.00, whichever is greater. The outstanding balance = the balance from last month plus the interest accrued this month. If the outstanding balance is less than the $25.00 minimum payment, the payment due is the outstanding balance. The credit card carries a minimum finance charge (interest charge) of $0.50. PURCHASE: There is no payment or interest accruing in January so the Ending Balance for January 2022 is the full $800. For each year, the Beginning Balance = Ending Balance from the previous year The interest rate is quoted as an APR ... "6% per year compounded monthly" so to convert it to a monthly rate you just divide it by 12 - monthly rate =6/12 = 0.50% Interest for each month = the Beginning Balance * 0.50% The Outstanding Balance = Beginning balance + Interest = $804 The Payment is 3% of the Outstanding Balance or $25 whichever is greater. The Ending Balance = Outstanding Balance - Payment Repeat the above all the way down...

When the interest (FC=finance charge) drops below 50 cents, it is constant at 50 cents When the payment drops below $25, it is constant at $25 until the amount is paid off Deliverable: Complete the Excel template, using the power of Excel to fill in the light orange columns.