project

Page 274 Project 2: Credit-Card Balances

Mr. Spendalot bought a $5,000 computer and charged it to his Gotta-Have-It Credit Card which had no previous balance. The Gotta-Have-It Credit Card charges 1.5% interest per month, based on the unpaid balance. So if Mr. Spendalot makes a partial payment of only $200, there will be a finance charge added to next month's bill. Use a spreadsheet to show the month-to-month changes in Mr. Spendalot's account. Assume he will pay $200 a month toward his debt and will not charge any more purchases. How long will it take him to pay off the $5000? How much money will he end up paying for the computer. Compare the purchase price to the actual cost.