Card Name (APR %)
Existing Balance
Credit Limit
MarK2 (8.2%)
$1,692.45
$3,000.00
Bee4 (10.5%)
$2,138.90
$2,500.00
You have $400.00 each month to payoff these 2 credit cards. You decide to pay only the interest on the lowest interest card and the
remaining amount to the other card.
1) How long does it take to payoff the higher interest card?
2) What is the amount of the last payment? Why?
3) What is the balance of the lowest interest card when the higher interest card is paid off ? Why?
4) Rework the problem so that you pay off the lower-interest card first. How much money do you say by paying off the higherinterest card first?
Be sure to include in your response:
 All parts of the table are complete and calculations correct
 The answers to the additional questions
Higher Interest Card (Payoff Option)
Month
1
2
3
4
5
Principal
Interest
accrued
Payment
(on due
date)
End-ofmonth
balance
© 2010 Connections Academy®, LLC. All rights reserved.
6
7
8
9
10
Lower Interest Card (Payoff Option)
Month
1
2
Principal
Interest
accrued
Payment
(on due
date)
End-ofmonth
balance
3
4
© 2010 Connections Academy®, LLC. All rights reserved.
5
6
7
8
9
10