Using the 5% minimum payment, 5,934 balance, and 20% interest rate, what is your first monthly payment?
Question 2
2.
How was it calculated?
Question 3
3.
How long will it take you to pay off your credit card when you pay 5% of the balance for each month?
Question 4
4.
What is the total amount of interest you will have paid by the time the credit card is paid off?
Question 5
5.
What percentage of your original balance is the interest?
Hint: Take total interest and divide it by your total starting balance. Round your answer to the nearest whole percent.
Question 6
6.
How much did you spend in total by using a credit card?
Question 7
7.
When looking at the Payment Schedule, why does the payment keep going down?
You can find the Payment Schedule by clicking "Show Payment Schedule"
You are given the option to “Select a payment schedule based on:” Click “Fixed payment”.
In red you should see the statement “Please enter a value between 296.7 and 5935”.
Explain where I got those numbers in context of the problem.
Question 9
9.
Is there an advantage to paying more than the minimum required payment throughout the life of the balance? Use math to justify your reasoning.
Question 10
10.
Google interest to payment ratio to learn what it means.
Is the number constant throughout the table in our problem?
Question 11
11.
Why is interest to payment ratio important? What does it tell you?
Question 13
13.
Research the consequences of missing a payment or paying less than the minimum required payment. List at least three things you discovered in your research.
