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) If you had paid off the lower interest card first, how much interest did you save by paying the higher interest card off 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 / 6 / 7 / 8 / 9 / 10Principal
Interest accrued
Payment (on due date)
End-of-month balance
Lower Interest Card (Payoff Option)
Month / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10Principal
Interest accrued
Payment (on due date)
End-of-month balance
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