Suppose you open a credit card account and charge $75 to the account on the first of each month to pay for your cable and Internet subscription. You plan to pay just the minimum payment each month for...


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Suppose you open a credit card account and charge<br>$75 to the account on the first of each month to pay<br>for your cable and Internet subscription. You plan to<br>pay just the minimum payment each month for the<br>first 6 months (until your summer job starts). The<br>APR is 15.99% and the minimum payment is 4.5% of<br>the balance. Use Excel to fill in the values in the<br>table below and answer the questions that follow.<br>Starting<br>Balance Purchases Purchases Charge Balance Payment<br>$0<br>New<br>Balance + Finance New Minimum<br>Month<br>$75<br>$75<br>$75<br>3<br>$75<br>4<br>$75<br>$75<br>6.<br>$75<br>7<br>XXX<br>XXX<br>XXX<br>XXX<br>XXX<br>Express your answers rounded to the nearest cent.<br>(a) What is the starting balance at the beginning of the<br>4th month?<br>(b) What is the starting balance at the beginning of the<br>7th month?<br>(c) Your total finance charge is what percent of your<br>total payments?<br>Express your answer rounded to the nearest tenth of a<br>percent.<br>

Extracted text: Suppose you open a credit card account and charge $75 to the account on the first of each month to pay for your cable and Internet subscription. You plan to pay just the minimum payment each month for the first 6 months (until your summer job starts). The APR is 15.99% and the minimum payment is 4.5% of the balance. Use Excel to fill in the values in the table below and answer the questions that follow. Starting Balance Purchases Purchases Charge Balance Payment $0 New Balance + Finance New Minimum Month $75 $75 $75 3 $75 4 $75 $75 6. $75 7 XXX XXX XXX XXX XXX Express your answers rounded to the nearest cent. (a) What is the starting balance at the beginning of the 4th month? (b) What is the starting balance at the beginning of the 7th month? (c) Your total finance charge is what percent of your total payments? Express your answer rounded to the nearest tenth of a percent.

Jun 11, 2022
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