P4-129 - $4,187 $4,357 2 $12,813 $128 $12,941 $4,229 $4,357...

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Credit Card Balance: $17,000 Credit Card APR: 12% Plan 1: Pay interest due at end of each month and principal at the end of fourth month. 1 $17,000 $170 $17,170 $0 $170 2 $17,000 $170 $17,170 $0 $170 3 $17,000 $170 $17,170 $0 $170 4 $17,000 $170 $17,170 $17,000 $17,170 $-mo. = $68,000 $680 = total interest Plan 2: Pay off the debt in four equal end-of-month installments (principal and interest). 1 $17,000 $170 $17,170
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Unformatted text preview: $4,187 $4,357 2 $12,813 $128 $12,941 $4,229 $4,357 3 $8,585 $86 $8,670 $4,271 $4,357 4 $4,314 $43 $4,357 $4,314 $4,357 $-mo. = $42,711 $427 = total interest Plan 3: Pay principal and interest in one payment at end of fourth month. 1 $17,000 $170 $17,170 $0 $0 2 $17,170 $172 $17,342 $0 $0 3 $17,342 $173 $17,515 $0 $0 4 $17,515 $175 $17,690 $0 $17,690 $-mo. = $69,027 $690 = total interest...
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