What would be the minimum monthly payment

Assignment Help Other Subject
Reference no: EM131022106

Assignment: Analysis of Credit Card Debt

Credit card debt is a reality for many in today's world. Suppose that you had a $5,270.00 balance on a credit card with an annual percentage rate (APR) of 15.53 percent. Consider the following questions and prepare a report based upon your conclusions. This report must be submitted as a Word document and attachment to the M3: Assignment Dropbox. Consider the following questions and prepare a report based upon your conclusions. Your report should be created as a Word document, but you are encouraged to create graphs and charts (which can be made in Excel and copied to the Word document) to illustrate your points. Remember: make sure you explain what the charts and/or graphs mean; do not assume the reader understands what they mean.

Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of $5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)?

Considering the minimum payment you just calculated, determine the amount of interest and the amount that was applied to reduce the principal. Hint: You'll need to find the total interest for the year first.

Consider one of your credit cards. What is the balance? How is the minimum monthly payment determined? What would be the minimum payment? How much of the minimum payment goes towards interest? How much of the minimum payment goes towards the principal? If you do not want to share an actual balance or do not have a credit card, calculate these amounts using an imaginary credit card balance.

Now, examine the terms of one of your credit cards or other revolving debt. Are there other charges that the credit card company is applying to your account? Are you receiving a special rate for a limited time? Does your card charge an annual service charge or an inactivity fee?

Examine a credit card bill (or other revolving debt) and see how long it will take to pay off your debt if you paid only the minimum payments (you can also use an online calculator like the one athttp://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx). What steps could you take to pay off this credit card (or debt) sooner? Determine the percentage of the principal that you need to pay down in order to pay off the credit card in the time frame of your choosing.

Many Americans find themselves amassing large amounts of credit card (or other revolving) debt at an early age. What advice concerning the use of credit cards and the fees they charge would you provide to a young adult planning on getting a credit card?

Reference no: EM131022106

Rise of islamic militants

Discuss how the rise of Islamic militants from the region and other areas of the Middle East continue to destabilize Nigeria, Ethiopia, Somalia and the horn of Africa.

Review the article- breaking the old social contract

If you were to think about a new social contract, what would it entail? Think about this question in terms of two contacts: one between citizens and the state, and one betwe

Example of a nuclear script and a commitment script

Discuss how the ideas of Adler, Sulloway, and others on birth order are or are not useful in explaining your own and your siblings' personalities, or the personalities of yo

Summarize the regional or global events

Define presidential doctrine and summarize the regional or global events during the Cold War leading up to the formation of the presidential doctrine you wrote about in Assi

Discuss thoughts to de crevecoeur letters from an american

Readers have been interested in St John de Crevecoeur's writings as a documentation of life in America at that time and as an idea of what being an American is all about. Mo

What is the plain view doctrine

What is the plain view doctrine? Discuss its three requirements."If the three requirements for the plain view doctrine are not met, any evidence seized is not admissible in

Compare and contrast the terrestrial planets of earth

Compare and contrast the Terrestrial Planets of Earth, Mercury, Venus and Mars. In what ways are they similar enough to be classed together and how are they different from one

Who use fat loss drugs lose about ten percent of weight

Eric Colman, FDA's deputy director of metabolic and endocrinology products division states that, "On average, people who use fat loss drugs lose about 5 % to 10 % of their o

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd