我是中国人

After starting a new job Benny applied for a credit card to help him set up in a flat.
The interest rate charged is 16.05% per annum for any amount still owing 30 days after the statement date.

Task 1 – Making minimum repayments
After the second month Benny decided not to use his credit card for new purchases until he had paid back what he owed.

1. Fill in the following table for 6 months showing Benny making minimum repayments of the amount owing (usually calculated at 5% of total outstanding).

Making minimum repayments
Month
Owed at start
Purchases
New total
Interest
charges
Amount
owing
Minimum
amount due
1
$0.00
$2,273.50
$2,273.50
$0.00
$2,273.50
$113.68
2
$2,159.83
$0.00
$2,159.83
$28.89
$2,188.71
$109.44
3
$2,079.28
$0.00
$2,079.28
$27.81
$2,107.09
$105.35
4
$2,001.74
$0.00
$2,001.74
$26.77
$2,028.51
$101.43
5
$1,927.09
$0.00
$1,927.09
$25.77
$1,952.86
$97.64
6

$1,855.22
$0.00
$1,855.22
$24.81
$1,880.03
$94.00

2. Clearly show the interest calculations for months 2 and 3.
Mouth2: I=$2,273.50×0.013375 Mouth3: I=$2,079.28×0.013375 =$28.89 =$27.81
3. Calculate the total paid in interest at the end of 6 months.
I=$28.89+$27.81+$26.40+$25.06+$23.79=$131.95
4. Estimate how long it will be before Benny clears the amount he owes. Clearly show the calculations for your estimate.
Amount owing is decreasing in roughly $80($2,273.50-$2,188.71=$80.55), I think Benny will clear the amount owing after 28 mouths ($2273.5/80.55=28mouths).

Task 2 – Double the minimum repayments
To hurry up the repayment of his credit card debt, Benny decided to repay double the minimum amount each month.
5. Complete the table showing the new schedule of repayments. Double minimum repayments
Month
Owed at start of month
Purchases
New total
Interest charges
Amount
owing
Minimum
amount due
1
0
$2,273.50
$2,273.50
0
$2,273.50