Credit Card Payments

•What is the balance?•What is the annual interest rate?•What is your monthly payment?

Example

•You have a balance of $1500•Your annual interest rate is 19%•You make the minimum payment, which is either 2% of your balance or at least $25

Set up an amortization table

Only difference to the table we set up for the car loan:

Payment = balance x 0.02 if this is larger than $25Payment = $25 if balance x 0.02 is less than $25

In Excel: =max(B3*0.02,25)

The max function will automatically pick the larger of the two values