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Credit Card Payments

Credit Card Payments. What is the balance? What is the annual interest rate? What is your monthly payment?. Example. You have a balance of $1500 Your annual interest rate is 19% You make the minimum payment, which is either 2% of your balance or at least $25. Set up an amortization table.

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Credit Card Payments

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  1. Credit Card Payments • What is the balance? • What is the annual interest rate? • What is your monthly payment?

  2. Example • You have a balance of $1500 • Your annual interest rate is 19% • You make the minimum payment, which is either 2% of your balance or at least $25

  3. Set up an amortization table Only difference to the table we set up for the car loan: Payment = balance x 0.02 if this is larger than $25 Payment = $25 if balance x 0.02 is less than $25 In Excel: =max(B3*0.02,25) The max function will automatically pick the larger of the two values

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