I think it is a 3 step process.
1 total price.
2. total time
3. total price after interest

The minimum monthly payment on a credit card is calculated by taking 4% of the credit card balance. The only exceptions to this rule was is minimum the company would bill, we’ll use $5, unless the balance is less than $5, at which point the company would bill the balance. So, if you owed $1,000.00 the end of a month your minimum payment would be $40;if you owed only $30, your payment would be $5; and If you owed $0.52 you bill would be $0.52.Also remember, no interest is charged on the first month!

A good interest rate for a first time credit card would be 16.99%, we will use that as our interest rate. We will assume that the interest is compounded daily and use 30 days for every month we don’t have to worry about the number of days in a month.

You are going to suppose you purchased a 64-inch LCD television for $1999.99 (plus 8.25%tax and $10 Electronic Waste Recycling Fee) on your credit card and pay only the minimum payment until the TV is paid off(not using the card for any other purchases). How long will it take to pay off the TV and how much would you end up paying for the TV in the end?



30FG.

Somewhat simple.

So I am able to complete the first part, by taking the first listed price(1999.99) multiplying by 1.0825 + 10.00. I think its 2,174.99.

Then I take that to find the time amount(in years) . On paper, I kind of know how to use the log functions, but I am not too sure. and I am definitely Not sure how to do it on a spreadsheet.

I feel that once I can get this time amount. I will be able to plug-and-chug my answers into the common A=P(1+r/n)^nt formula to get the final result.

Is there a predetermined formula for any of this on excel? I found one, but it wanted the amount owed each period to be constant. This is extra credit, so I expect to use nonstandard resources.




I need to turn in a spreadsheet through email to get credit. I want to do it, but I need help in figuring out the time needed to complete the payment through minimum pay.


he mentions: minimum monthly pay is 4%, how does this contrast to a daily compound?

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if needed, i can offer up to 45fg.

This post was edited by thestoryofisaac on Apr 11 2013 05:20pm