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1. Subtract your payment from the balance: $100. $25 = $75.
2. Look up the annual interest
rate for your card, then figure what the monthly rate would be.
3. Multiply your answer by the monthly interest rate: $75 x .015 = $1.125
4. Add the answers of steps
1 & 2:
Your new balance is $76.13. You paid your creditor $1.13 this month for the luxury of owning a credit card.
5. Find the new balance for
each month by going through the above steps.
You may want to include formula for calculating total payments over time. |