math 122 final proj

# math 122 final proj - Caught in the Act, the Credit Card...

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Caught in the Act, the Credit Card Act Leslie Curtis, Nicole Whiddon, Kelsey Dean, Latreana Ponder Professor Gardner, Math 122 December 3, 2009

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This project explores the repercussions of using a credit card. There are positive aspects to being a cardholder, but through our research we have found that you can end up paying big money in order to use money. We think that most people would rather use their money to make purchases than to pay off the interest that accumulates with the use of a credit card. The bill “Credit Card Minimum Payment Notification Act” is a bill passed on banking, Housing, and Urban Affairs. The act requires credit card issuers to include specific information on the front of the first page of the billing statement. A one thousand dollar balance will take 17 years and 3months to pay off at a total cost of two thousand five hundred ninety dollars and thirty-five cents. Ext. This information is based on an annual percentage rate of 17 percent and a minimum payment of 2 percent or ten dollars, whichever is greater. This bill is very necessary to cardholders, so that they are aware of what they are getting into. Many people are naturally procrastinators, so it is very easy to fall into the habit of buying things and planning to pay for them later. But people may not realize how much later they will still be paying. We found that by making minimum payments, more of the monthly payment is going toward paying the interest off than the actual debt. So the more you pay per month, the less you will end up paying overall. By doubling up the minimum payment, you could be cutting the years you will be paying by more than half. So before you go on a shopping spree with your new card, you should keep in mind that you’ll be paying for years.
Part 1. Table A shows the ending balance for each month if a student makes a minimum

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## This note was uploaded on 05/25/2011 for the course MATH 122 taught by Professor Carol during the Winter '10 term at Grand Valley State University.

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math 122 final proj - Caught in the Act, the Credit Card...

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