You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay $400.00 the first 2 months and then $200.00 until the bill is paid off. You pay the bill on the due date each month.1) Complete the table showing the decreasing debt.2) How much is your last payment?3) What is the total amount paid by the time you pay off the credit card? 4) What was your debt ratio at the beginning?Be sure to include in your response: • All parts of the table are complete and calculations correct• The answers to the additional questionsMonthPrincipalInterest accruedPayment (on due date)End-of-month balance
Accepted Solution
A:
Answer:
Month
1
2
3
4
5
6
7
8
9
Principal
1853.42
1477.36
1096.44
910.60
722.36
531.69
338.56
142.93
Interest Accrued
23.94
19.08
14.16
11.76
9.33
6.87
4.37
1.85
Payment (on due date)
400
400
200
200
200
200
200
144.78
End of month balance
1477.36
1096.44
910.60
722.36
531.69
338.56
142.93
0.00
How much is your last payment? $144.78
What is the total amount paid by the time you pay off the credit card? $1,944.78
What was your debt ratio at the beginning? $0.62
Step-by-step explanation: