Question

Option 1: Use Your Credit Card (15 pts)

You have a Maxi Card with a $700 limit for this exercise. The card has a monthly finance charge of 1.67%. Fill out the following table. Your payment each month is $50. You are finished when you have paid it off.
Each month, except the first:
Balance = last month’s new balance – payment
Monthly Finance Charge = balance (0.0167)
New balance = balance + monthly finance charge
Month
1
2
3
4
5
6
7
8
Balance








Interest








New Balance








Payment









Month
9
10
11
12
13
14
15
16
Total
Balance









Interest








$
New Balance









Payment








$

Answer 1

Answer: 1.67

Explanation:

The card has a monthly finance charge of 1.67%. Fill out the following table. Your payment each month is $50. You are finished when you have paid it off.