Analysis of Credit Card Debt
Argosy University online
General Education Mathematics
Instructor: Sohrab Bakhtyari
January 25, 2013
Analysis of Credit Card Debt 1. My Introduction with a credit card balance of $5,270.00 and an (APR) of 15.53 percent based upon my own conclusions and assuming there are no other fees are applied. In my report I took my balance of $5,270 x 15.53%= $818.431. The Maximum monthly payment would be $5,270.00+818.43= $6,088.43. Took get this I take the balance + total interest = Total balance. So to get the minimum monthly payment take $6,088.43/12=$508.00 minimum monthly payment. 1. The amount of interest $818.43 the amount of interest less the amount applied to reduce the principal which is $5,270.00. So you take the amount of interest $818.43 -$508.00 = 310.43 the amount to reduce the principal. I have inserted a pie chart to show my examples.
5270 | Total Balance | 5270 | 818.43 | Total Interest | 818.43 | 6088.43 | M. Balance | 6088.43 |
This pie chart above shows Total balance + Total interest = Balance.
2. The balance of my credit card is $535.07, my minimum monthly amount is determined by Payments, purchases, cash advances, past due amount, and interest charged. My minimum credit card payment is $53.00. The amount of my minimum monthly payment that goes towards interest is $11.36. The minimum monthly payment that goes toward the principal is $ 41.64. The actual amount of my credit card is 1,786.00. 3. The terms of my credit cards or other revolving debt that the credit card company is applying to my account are Transfer fees, late payment fees and cash advance fee if cash with drawls exceed the principal balance. I am not receiving any special rate or no annual service charge for inactivity fee for not using my card. 4. The steps I can pay of my credit card debt off sooner are
Using my card each month to use the
References: http://askville.amazon.com/advice-give-young-person-credit-cards/AnswerViewer.do?requestId=4858365- Retrieved January 25, 2013.