# The Credit After Christmas Original

### See how Samuel and Mrs. Thompson handle the hustle!

## The lesson set for Samuel

__What do I know? __

*Samuel's parents lent him $1200*- They charge him 6.5% interest
- His parents also expect the money back in 3 years

__What do I do?__

*The formula I=PRT*

*So, basically you have to multiply 1200 by 3 since Samuel's parents lent him$1200 and they want the money back in 3 years.*

*1200 x 3 =3600 *

*Now the percentage is 6.5% and I turned my percentage into a decimal and multiplied it by 3600*

*3600 x 0.065=234*

*234 is the simple interest. In order to find the total amount Samuel's parents want from him you add 1200 and 234 together.*

*1200+234=1434 *

*Therefore,Samuel has to pay his parents $1,434*

## Jingle bills, Jingle bills (Part 1)

__What do I know?__

*I know that Mrs. Thompson's balance is now $3,962.14**The annual interest rate is still 12.9%**The minimum payment due is still $80*

**What's the answer?**

*The credit card company calculated the new balance by subtracting 4,000-80 which is 3,920. Then you add the simple interest which is $42.14. So, the sum is $3,962.14*

## Jingle bills, Jingle bills (part 2)

__What do we know?__*Mrs. Thompson send $250 for her March payment**The minimum payment on the bill should be 2% of the balance**The interest rate and late fee stay the same from the previous bill**I have to find out what the bill says*

3962.14-250=3712.14=

__What do I do?__3962.14-250=3712.14=

**Balance before interest.***I am subtracting 250 because that's what Mrs. Thompson paid on her bill.*

*0.129/12=0.01075=1.07%= Monthly interest rate*

*I divided 0.129 by 12 because 12.9% is the rate per year and there are 12 months in a year.*

*3712.14*.0107=39.905...~40*

* **Now the percentage is 1.07% and I turned my percentage into a decimal and multiplied it by 3712.14 then added it to the monthly interest rate to the balance.*

*3712.14+40= 3752.14 is the Balance*

*Next I will find the minimum payment*

*3752.14*0.02=75.04...~ 75 is the minimum payment.*

**Balance:$3,752.14**

**Annual interest rate :12.9%**

**Minimum payment due:$75**

**Late fee: $20 if payment not received by 4/15/2016**

## Reflection-Chelsie Wells 702

The most difficult application to apply for me is commission because sometimes I add the sales to the salary and think that amount is what the person earns. Other then commission, These percent applications are easy.