# Fp 100 week 3 worksheet

The Cost of Credit Card Usage Worksheet

Review Ch. 5 of Focus on Personal Finance, your Week 3 Khan Academy Video, and your iGrad Credit Card Module for support in completing this assignment.

1. Calculate the following using the Bankrate calculator. You may use the Bankrate calculator for the remainder of the questions on this worksheet.

Credit Card Balance

Interest Rate

Minimum/Fixed Payment

Number of Months to Pay in Full

Total Interest Paid

Impact   of Interest Rates

\$5,000

13%

Minimum   (interest+1% of balance)

261

\$4938.46

\$5,000

18%

Minimum   (interest+1% of balance)

273

\$6923.09

Impact   of Payment Amounts

\$2,000

15%

Minimum   (interest+1% of balance)

175

\$1979.20

\$2,000

15%

Fixed \$100

24

\$315.89

2. In the “Impact of Interest Rates” example, a 5% interest rate difference results in how much extra interest paid when making only a required minimum monthly payment equal to the monthly interest, plus 1% of the outstanding balance?

3. In the “Impact of Payment Amounts” example, how much total interest would you save by making a fixed payment of \$100 per month instead of the required minimum payment equal to the monthly interest, plus 1% of the outstanding balance? \$1663.31

4. How much quicker would you be able to pay off the \$2,000 credit card balance by making a fixed payment of \$100 each month instead of the required minimum payment? 151 months faster, it would be paid off in just 2 years vice over 14 years.

5. Assume you have a friend who is making the minimum monthly payments on a credit card. Your friend asks your thoughts on what he or she is doing. Based on these calculations and what you have learned, how would you advise your friend about making only minimum payments? Your response should be at least 100 words.

6. The chart above looks at paying off a credit card balance and assumes you will not be using it while paying it down. In these minimum payment examples the balance decreases by only 1% each month. Most of us will use credit cards throughout the year, and that means we may carry a balance past the grace period. Assuming you were trying to pay off the balance while still using the card, what actions must you take? Your response should be at least 100 words.

7. What recommendations would you make in regards to properly managing credit card usage and repayment? Your response should be at least 100 words.

Choosing Between Credit Card Options

Review the Schumer Box information provided below for two credit card options, and then answer the question that follows.

CARD DISCLOSURES

Credit Card Option A

Credit Card Option B

Annual   Percentage Rate (APR) for Purchases and Transfers

24.99%, variable

13.24%, variable

24.99%, variable

23.24%, variable

Annual Fee

\$0

\$59

Transfer   Fee

3% of balance transferred

\$0

Grace   Period

20 days

25 days

Late   Payment Fee

\$25

\$35

Rewards   Program

No

Yes

8. Which one of these two card options would you choose for your personal use? Provide support for your decision, considering which three attributes are most important to you and trade-offs that you are willing to accept. Your response should be at least 100 words.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.