The minimum monthly payment charged of a certain credit card company for accounts carrying a balance is calculated as P150 plus the "finance charge" which we will take as being one twelfth of the annual interest rate (taken as 19%). That means that each month, the bank expects to paid 1.583% of what it is owed as a finance charge.
You are going to look at a hypothetical student who spends four years at the institute and borrows consistently on his credit card during that time. In a loan situation, the "principal" is the amount you owe the bank.
In column A, beneath the word "date", insert the numbers 1 through 48 down the column. Don't type these in manually - use a function or fill method for all cells after the first one or two.
Our student is going to charge P1000 worth of purchases to his credit card every month. In column B, labeled "principal", enter P1000 in the first cell, and use a function to add P1000 to this value each month through 48. By month 48, the "principal" should be P48000.
In column C, labeled "finance charge", enter a formula to calculate 1.583% of the number in the cell to left (i.e. the same row, in column B). Format both columns B and C to show the data as "currency" in peso and centavos.
2006-10-20
06:15:13
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3 answers
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asked by
katie
1