Credit Cards

Amortization Tables Fill-in headings across in the first row. (Type "Month in cell A1, Beginning Balance in cell B1, etc…) Month Beginning BalancePaymentInterestPrincipalEnd Balance

Month and Loan Amount Fill-in the total number of months going down (type in 0 in A2 and 1 in A3 then select both numbers and fill down) to 60 months Type in loan amount ( ) in cell F2. This is the only cell (besides the headings and the months) that doesn't have a formula.

Each month you will pay off a bit of your balance. The beginning balance each month, is your balance that month before your payment. In cell B3 type "= F2“

How much you pay each month!!

Payment option 1 You have to decide Type in a number for payment P & I

Monthly interest Money that the bank makes The Annual Percentage Rate divided by 12 times the Beginning Balance We’ll say for this credit card … 15% APR Interest = (.15/12)*B3

Amount that goes toward paying off your balance!! Principal = Payment – interest amount Principal = C3 – D3

Ending Balance Ending Balance = Beginning balance minus the principal you paid Ending balance = B3-E3

Payment option 2 Minimum payment: Percent of Balance OR Some minimum dollar amount Payment = MAX(Balance*some percent, 25) Payment = MAX(B3*.02, 25)

Payment option 3 Whatever it takes to pay it off in certain time =PMT(interest/12, # of payments, - Beginning balance) So if you bought the cow cookie jar for $2000, wanted to pay it off in 5 years making monthly payments and your credit card’s annual percentage rate is 15%.... =PMT(.15/12, 60, -2000)