Solve the Problem 110240
Complete and Extend the Table to Show Your Balance

Essay

Solve the problem.
-Assume you have a balance of $1400 on a credit card with an APR of 19.2%, or 1.6% per
month. You start making monthly payments of $600, but at the same time you charge an
additional $280 per month to the credit card. Assume that interest for a given month is
based on the balance for the previous month. The following table shows how you can
calculate your monthly balance. $$\begin{array} { l c c c c } \hline \text { Month } & \text { Payment } & \text { Expenses } & \text { Interest } & \text { New Balance } \\\hline 0 & - & - & - & \$ 1400 \\1 & \$ 600 & \$ 280 & 1.6 \% \times \$ 1400 = \$ 22.40 & \$ 1400 - \$ 600 + \$ 280 + \$ 22.40 = \\2 & \$ 600 & \$ 280 & & \\3 & \$ 600 & \$ 280 & & \\\hline\end{array}$$ 1102.40
Complete and extend the table to show your balance at the end of each month until the
debt is paid off.