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

question 168

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.

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Definitions:

War Of 1812

Conflict fought between the United States and Great Britain from 1812 to 1815, largely over issues of trade restrictions and impressment of American sailors by the British Navy.

War Of 1812

A military conflict between the United States and Great Britain from 1812 to 1815, primarily over British restrictions on U.S. trade and America's desire to expand its territory.

Treaty

A formal agreement between two or more sovereign states, usually regarding peace, alliances, trade, or other international relations.

Standard Error

A measure of the variability or precision of a sample statistic as an estimate of a population parameter.