What formula calculates interest paid and months paying?
My mom just got a credit card and I am scared for her. I did a formula in high school which showed how much time you spent paying on a credit card purchase and how much interest you paid. She is spending calling it free money and just paying the minimum of 20 dollars a month. I want to show her the formula I learned so she can see how long she will have to pay off things if she does it this way AND show her how much extra money she is wasting by paying the minimum. I have a TI83 calculator with this apps that we used but I forgot how to enter information. Here is how much I know.
Intro APR is 0% for 1 year.
After that it is 14.9%
lets say I spend 2000 dollars with the credit card.
I pay 20 dollar monthly payments.
How long will it take to be paid off? How much interest am I paying?
I used to do this by hand, but forgot how.
Here’s an online calculator at bankrate.com. They’ve been around for years and are legit.
http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx
Not having all your data, I inputted as close to the above as I could get.
“It will take you 176 months to be rid of your debt. In that time, you will pay $2,000.28 in interest.” By the way, this assumes the monthly min. is $45.
For other calculators (“calculating the true cost of debt”):
http://www.bankrate.com/debt-management.aspx
Good luck!
Home Mortgage Credit Card Payoff Calculator – Pay off Debt!
|
Samsung a167 Prepaid GoPhone (AT&T) with $15 Airtime Credit
$55.99
Keep your friends and family close even when you’re away with the stylish, easy-to-use Samsung A167 clamshell phone, with access to popular instant messaging services as well as text messaging and voice communications. This phone also features a VGA camera for still photos, speakerphone for hands-free communication, personal organizer tools, and up to 3 hours of talk time. With AT&T’s GoP…
|
