April 1, 2018 (start of billing cycle) and a due date of April 30,
2018 (end of billing cycle).
I ONLY NEED QUESTIONS IN BOLD ANSWERED. QUESTION 10, 11, 12 and
13.
For the Excel spreadsheet I need to know the calculations to
input onto excel (what cells to reference in order to get the
correct answer.)
Previous
balance (+)
254.39
Current Amount Due
127.88
Purchases (+)
127.88
Amount Past Due
Cash
Advances (+)
Amount Over Credit Line
Payments (-)
254.39
Minimum Payment Due
20.00
Credits (-)
FINANCE
CHARGES (+)
Late
Charges (+)
Periodic Rate
1.37%
NEW
BALANCE (=)
127.88
APR
16.47%
1. What is the periodic rate for this credit
card? ____________________
2. What is the annual percentage rate (APR) for this
credit card? ______________________
3. How is the APR calculated based on the periodic
rate?
4. What is the current balance for this
statement? _____________________
5. What is the minimum payment
due? _____________________
6. Suppose John Doe pays the minimum payment for this
month (April). What would his remaining balance be?
7. Now that he is carrying a balance, he will be
charged interest in subsequent months. Calculate his
interest payment for May.
8. Using the 1 + trick, calculate how much he will
owe in May.
9. Suppose he pays the minimum payment in
May. Calculate his balance after he makes a payment.
10. (Work in Excel) John Doe has decided
that he will stop using this credit card until he pays it off in
full. Use the spreadsheet template attached to figure
out how long it will take John to pay off his debt. (Use
the template on the left-hand side for this example.)
He will pay off his debt after _______________
months.
He will pay _______________ in
interest.
11. (work in Excel) Using the template on the
right-hand side, change the balance to $620.32. How many
months will it take him to pay off this debt at a minimum payment
of $20/month? How much will he pay in
interest?
He will pay off his debt after _______________
months.
He will pay _______________ in
interest.
12. What are some ways that he can pay less
in interest?
13. Change the minimum payment to $30. If he pays $30
per month, how long will it take to pay off this debt? How much
interest will be paid?
He will pay off his debt after________
months.
He will pay ________ in interest.
- Below Is A Sample Credit Card Statement With A Statement Date Of April 1 2018 Start Of Billing Cycle And A Due Date O 1 (124.28 KiB) Viewed 36 times