Month

1
2
3
4
5
6
7
8
9
10
11
12
Totals

Old Balance Interest

$ 2,000.00 $ 24.17
$ 1,999.17 $ 24.16
$ 1,998.32 $ 24.15
$ 1,997.47 $ 24.14
$ 1,996.61 $ 24.13
$ 1,995.73 $ 24.12
$ 1,994.85 $ 24.10
$ 1,993.95 $ 24.09
$ 1,993.04 $ 24.08
$ 1,992.13 $ 24.07
$ 1,991.20 $ 24.06
$ 1,990.26 $ 24.05
$ 289.31

Payment New Balance

$ 25.00 $ 1,999.17
$ 25.00 $ 1,998.32
$ 25.00 $ 1,997.47
$ 25.00 $ 1,996.61
$ 25.00 $ 1,995.73
$ 25.00 $ 1,994.85
$ 25.00 $ 1,993.95
$ 25.00 $ 1,993.04
$ 25.00 $ 1,992.13
$ 25.00 $ 1,991.20
$ 25.00 $ 1,990.26
$ 25.00 $ 1,989.31
$ 300.00

Interest accrued
Total Payments
Principle Paid
Interest Paid

$ 289.31
$ 300.00
$ 10.69
$ 289.31

Month
1
2
3
4
5
6
7
8
9
10
11
12
Totals

Old Balance
$ 2,000.00
$ 1,974.17
$ 1,948.02
$ 1,921.56
$ 1,894.78
$ 1,867.67
$ 1,840.24
$ 1,812.48
$ 1,784.38
$ 1,755.94
$ 1,727.16
$ 1,698.03

Interest accrued
Total Payments
Principle Paid
Interest Paid

Interest
$ 24.17
$ 23.85
$ 23.54
$ 23.22
$ 22.90
$ 22.57
$ 22.24
$ 21.90
$ 21.56
$ 21.22
$ 20.87
$ 20.52
$ 268.55

Payment New Balance

$ 50.00 $ 1,974.17
$ 50.00 $ 1,948.02
$ 50.00 $ 1,921.56
$ 50.00 $ 1,894.78
$ 50.00 $ 1,867.67
$ 50.00 $ 1,840.24
$ 50.00 $ 1,812.48
$ 50.00 $ 1,784.38
$ 50.00 $ 1,755.94
$ 50.00 $ 1,727.16
$ 50.00 $ 1,698.03
$ 50.00 $ 1,668.55
$ 600.00
$ 268.55
$ 600.00
$ 331.45
$ 268.55

1. The total paid to the credit card company was $300.00 after the first year.
$10.61 was paid to the original balance at the end of the first year.
I would guess that it would take 30 years to pay off the balance at this rate.
2. It will take 301.44 monthsto pay the balance in full at 25$ payments,
This equals 25.12 years.
Thhe total amount paid was $7536.
3. It will take 58.52 months paying 50$ a month to the balance.
This equals 4.87 years
Thte total amount paid is 2926.
4. It will take 34.47 month to pay off at 75$ a month.
This equeals 2.87 years.
The total amount paid is 2585.25.
5. In order to pay off the total amount in one year you would have to make payments of 180.05.
The total amount paid to the credit card company would be $2160.54.
6. The best plan to pay off the credit card would be to pay it off in 12 months because you pay much less interest over the time
The worst plan would be to pay $25.00 a month because it would take you more than 24 times as long and cost you much more than you ever borrowe
You should either make as close to that payment as possible and make extra payments when possible. IF the debt is avoidable you should not borrow.
7. The average consumer can learn the cost of borrowing from doing this assignment as well as physically see how much money they waste.
Most items paid for in credit end up costing much more than the original debt.

Work:

Month
1
2
3
4
5
6
7
8
9
10
11
12
Totals

Old Balance
$ 2,000.00
$ 1,949.17
$ 1,897.72
$ 1,845.65
$ 1,792.95
$ 1,739.62
$ 1,685.64
$ 1,631.00
$ 1,575.71
$ 1,519.75
$ 1,463.12
$ 1,405.80

Interest
$ 24.17
$ 23.55
$ 22.93
$ 22.30
$ 21.66
$ 21.02
$ 20.37
$ 19.71
$ 19.04
$ 18.36
$ 17.68
$ 16.99
$ 247.78

Interest accrued
Total Payments
Principle Paid
Interest Paid

Month
1
2
3
4
5
6
7
8
9
10
11
12
Totals

Old Balance
$ 2,000.00
$ 1,844.12
$ 1,686.36
$ 1,526.69
$ 1,365.09
$ 1,201.54
$ 1,036.02
$ 868.49
$ 698.94
$ 527.34
$ 353.67
$ 177.90

Interest accrued
Total Payments
Principle Paid
Interest Paid

Payment
New Balance
$ 75.00
$ 1,949.17
$ 75.00
$ 1,897.72
$ 75.00
$ 1,845.65
$ 75.00
$ 1,792.95
$ 75.00
$ 1,739.62
$ 75.00
$ 1,685.64
$ 75.00
$ 1,631.00
$ 75.00
$ 1,575.71
$ 75.00
$ 1,519.75
$ 75.00
$ 1,463.12
$ 75.00
$ 1,405.80
$ 75.00
$ 1,347.78
$ 900.00
$ 247.78
$ 900.00
$ 652.22
$ 247.78

Interest
$ 24.17
$ 22.28
$ 20.38
$ 18.45
$ 16.49
$ 14.52
$ 12.52
$ 10.49
$ 8.45
$ 6.37
$ 4.27
$ 2.15
$ 160.54

Payment
New Balance
$ 180.05
$ 1,844.12
$ 180.05
$ 1,686.36
$ 180.05
$ 1,526.69
$ 180.05
$ 1,365.09
$ 180.05
$ 1,201.54
$ 180.05
$ 1,036.02
$ 180.05
$ 868.49
$ 180.05
$ 698.94
$ 180.05
$ 527.34
$ 180.05
$ 353.67
$ 180.05
$ 177.90
$ 180.05
$ 0.00
$ 2,160.54
$ 2,321.08
$ 160.54
$ 2,160.54
$ 2,000.00
$ 160.54

Month Old Balan

1
$ 2,000.0
2
$ 1,974.1
3
$ 1,948.0
4
$ 1,921.5
5
$ 1,894.7
6
$ 1,867.6
7
$ 1,840.2
8
$ 1,812.4
9
$ 1,784.3
10
$ 1,755.9
11
$ 1,727.1
12
$ 1,698.0
13
$ 1,668.5
14
$ 1,638.7
15
$ 1,608.5
16
$ 1,577.9
17
$ 1,547.0
18
$ 1,515.7
19
$ 1,484.0
20
$ 1,451.9
21
$ 1,419.4
22
$ 1,386.6
23
$ 1,353.4
24
$ 1,319.7
25
$ 1,285.7
26
$ 1,251.2
27
$ 1,216.3
28
$ 1,181.0
29
$ 1,145.3
30
$ 1,109.1
31
$ 1,072.5
32
$ 1,035.5
33
$ 998.04
34
$ 960.10
35
$ 921.70
36
$ 882.84
37
$ 843.51
38
$ 803.70
39
$ 763.41
40
$ 722.64
41
$ 681.37
42
$ 639.60
43
$ 597.33
44
$ 554.55
45
$ 511.25

Interest Payment New Bala

$ 24.17 $ 50.00 $ 1,974.1
$ 23.85 $ 50.00 $ 1,948.0
$ 23.54 $ 50.00 $ 1,921.5
$ 23.22 $ 50.00 $ 1,894.7
$ 22.90 $ 50.00 $ 1,867.6
$ 22.57 $ 50.00 $ 1,840.2
$ 22.24 $ 50.00 $ 1,812.4
$ 21.90 $ 50.00 $ 1,784.3
$ 21.56 $ 50.00 $ 1,755.9
$ 21.22 $ 50.00 $ 1,727.1
$ 20.87 $ 50.00 $ 1,698.0
$ 20.52 $ 50.00 $ 1,668.5
$ 20.16 $ 50.00 $ 1,638.7
$ 19.80 $ 50.00 $ 1,608.5
$ 19.44 $ 50.00 $ 1,577.9
$ 19.07 $ 50.00 $ 1,547.0
$ 18.69 $ 50.00 $ 1,515.7
$ 18.31 $ 50.00 $ 1,484.0
$ 17.93 $ 50.00 $ 1,451.9
$ 17.54 $ 50.00 $ 1,419.4
$ 17.15 $ 50.00 $ 1,386.6
$ 16.76 $ 50.00 $ 1,353.4
$ 16.35 $ 50.00 $ 1,319.7
$ 15.95 $ 50.00 $ 1,285.7
$ 15.54 $ 50.00 $ 1,251.2
$ 15.12 $ 50.00 $ 1,216.3
$ 14.70 $ 50.00 $ 1,181.0
$ 14.27 $ 50.00 $ 1,145.3
$ 13.84 $ 50.00 $ 1,109.1
$ 13.40 $ 50.00 $ 1,072.5
$ 12.96 $ 50.00 $ 1,035.5
$ 12.51 $ 50.00 $ 998.04
$ 12.06 $ 50.00 $ 960.10
$ 11.60 $ 50.00 $ 921.70
$ 11.14 $ 50.00 $ 882.84
$ 10.67 $ 50.00 $ 843.51
$ 10.19 $ 50.00 $ 803.70
$ 9.71 $ 50.00 $ 763.41
$ 9.22 $ 50.00 $ 722.64
$ 8.73 $ 50.00 $ 681.37
$ 8.23 $ 50.00 $ 639.60
$ 7.73 $ 50.00 $ 597.33
$ 7.22 $ 50.00 $ 554.55
$ 6.70 $ 50.00 $ 511.25
$ 6.18 $ 50.00 $ 467.42

m= ln[-(2000*.145/12) /25+1]
________________________
-ln(.145+1)
= 25.12 * 12 = 301.44
m= ln[-(2000*.145/12) /50+1]
________________________
-ln(.145+1)

46

$ 467.42

$ 5.65

59
50
51
52
53
54
55
56
57
58
48
48
48
48

$ 423.07
$ 378.18
$ 332.75
$ 286.78
$ 240.24
$ 193.14
$ 145.48
$ 97.24
$ 48.41
$ (1.00)
$ (51.02)
$ (101.63
$ (152.86
$ (204.71

$ 5.11
$ 4.57
$ 4.02
$ 3.47
$ 2.90
$ 2.33
$ 1.76
$ 1.17
$ 0.58
$ (0.01)
$ (0.62)
$ (1.23)
$ (1.85)
$ (2.47)

$ 50.00 $ 423.07

=4.87 * 12 = 58.52
m= ln[-(2000*.145/12) /75+1 ]
________________________
-ln(.145+1)
= 2.87 * 12 = 34.47
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00

$ 378.18
$ 332.75
$ 286.78
$ 240.24
$ 193.14
$ 145.48
$ 97.24
$ 48.41
$ (1.00)
$ (51.02)
$ (101.63
$ (152.86
$ (204.71
$ (257.18