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what recommendation would you make in regards to poperly managing credit card usage and repayment?

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The Cost of Credit Card Usage Worksheet FP/100 Version 1

The Cost of Credit Card Usage Worksheet

Review Ch. 5 of Focus on Personal Finance, your Week 3 Khan Academy Video, and your iGrad Credit  Card Module for support in completing this assignment.  

1. Calculate the following using the Bankrate calculator. You may use the Bankrate calculator for the  remainder of the questions on this worksheet.  

Credit Card  

Balance

Interest Rate

Minimum/Fixed  Payment

Number of  

Months to Pay in Full

Total Interest  

Paid

Impact of Interest Rates

$5,000

13%

Minimum  

(interest+1% of  

balance)

261 

$4,938.46

$5,000

18%

Minimum  

(interest+1% of  

what is Impact of interest Rates?

balance)

273 

$6,923.09

Impact of Payment Amounts

$2,000

15%

Minimum  

(interest+1% of  

balance)

175 

$1,979.20

$2,000

15%

Fixed $100

24 

$315.89

2. In the “Impact of Interest Rates” example, a 5% interest rate difference results in how much extra  interest paid when making only a required minimum monthly payment equal to the monthly interest,  plus 1% of the outstanding balance?  

$1,839.83

3. In the “Impact of Payment Amounts” example, how much total interest would you save by making a  fixed payment of $100 per month instead of the required minimum payment equal to the monthly  interest, plus 1% of the outstanding balance?  We also discuss several other topics like chuscle

$315.89

4. How much quicker would you be able to pay off the $2,000 credit card balance by making a fixed  payment of $100 each month instead of the required minimum payment?  

what is Impact of Payment Amount?

It’s a 151 month difference between paying the fixed $100 and the minimum.  

5. Assume you have a friend who is making the minimum monthly payments on a credit card. Your  friend asks your thoughts on what he or she is doing. Based on these calculations and what you have learned, how would you advise your friend about making only minimum payments? Your response  should be at least 100 words.  

I would tell them to not make minimum payments. They should go with a fixed amount because it  will pay off in the long run. Paying the minimum payments means paying more money for the  interest rates and losing money. They can pay things off sooner if they go with a fixed amount.

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The Cost of Credit Card Usage Worksheet

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FP/100 Version 1

6. The chart above looks at paying off a credit card balance and assumes you will not be using it while  paying it down. In these minimum payment examples the balance decreases by only 1% each month. Most of us will use credit cards throughout the year, and that means we may carry a balance past the  grace period. Assuming you were trying to pay off the balance while still using the card, what actions  must you take? Your response should be at least 100 words.

I would have to pay more money to keep my balance down and the interest rates in check.  If you want to learn more check out the belief that the physical attributes of places can be analyzed and manipulated to improve the flow of cosmic energy that binds all living things is called:

7. What recommendations would you make in regards to properly managing credit card usage and  repayment? Your response should be at least 100 words.

I would say to not go with the minimum payment. Always do the fixed amount since it will keep you  from paying all that interest. That will be more money in your pocket in the end. You have to think  about the dollar costs and the psychological costs of using credit. Overall, you have to make sure you can even afford to use a credit card. I don’t have a job so there is no use in me getting a credit card  and I know I can’t pay the money back. You have to think about whether you can repay the amount  your using and if you have a stable job. Don't forget about the age old question of econ 13 class notes

Choosing Between Credit Card Options

Review the Schumer Box information provided below for two credit card options, and then answer the  question that follows.

CARD DISCLOSURES

Credit Card Option A

Credit Card Option B

Annual Percentage Rate (APR)  for Purchases and Transfers

24.99%, variable

13.24%, variable

APR for Cash Advances

24.99%, variable

23.24%, variable

Annual Fee

$0

$59

Transfer Fee

3% of balance transferred

$0

Grace Period

20 days

25 days

Late Payment Fee

$25

$35

Rewards Program

No

Yes

8. Which one of these two card options would you choose for your personal use? Provide support for  your decision, considering which three attributes are most important to you and trade-offs that you are willing to accept. Your response should be at least 100 words.

I would choose option B although I would love to have no annual fee. The $59 annual fee isn’t too bad since everything else comes with the card. Having a low APR, having a rewards program, and the  APR for cash advances are all important to me. The good does outweigh the bad. I don’t plan to  make late payments and that high fee will keep me on track to make my payments on time. Also I like  that the grace period is longer so I have more time to pay. The APR for purchases and transfers is  such a huge difference between the two cards. I’m going to stick with my decision for card B. If you want to learn more check out dit 121 exam 2
We also discuss several other topics like this view reflects the belief that subjective experiences are of little value and that humans are complex machines.
Don't forget about the age old question of cpt 121

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