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You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay $400.00 the first 2 months and then $200.00 until the bill is paid off. You pay the bill on the due date each month. Complete the table showing the decreasing debt. How much is your last payment? What is the total amount paid by the time you pay off the credit card? What was your debt ratio at the beginning? month 1 2 3 4 5 6 7 8 Principal 1853.42 interest accrued Payment on due date 400 400 200 200 200 200 200 ? end of month bal

You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay $400.00 the first 2 months and then $200.00 until the bill is paid off. You pay the bill on the due date each month. Complete the table showing the decreasing debt. How much is your last payment? What is the total amount paid by the time you pay off the credit card? What was your debt ratio at the beginning? month 1 2 3 4 5 6 7 8 Principal 1853.42 interest accrued Payment on due date 400 400 200 200 200 200 200 ? end of month bal

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR.  You pay $400.00 the first 2 months and then $200.00 until the bill is paid off.  You pay the bill on the due date each month.

  • Complete the table showing the decreasing debt.
  • How much is your last payment? 
  • What is the total amount paid by the time you pay off the credit card?

What was your debt ratio at the beginning? 

month 1 2 3 4 5 6 7 8
Principal 1853.42              
interest accrued                
Payment on due date 400 400 200 200 200 200 200 ?
end of month bal                
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Isn't the final payment going to be $144.78? How did you get final payment of $138.51

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