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.
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)
- 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=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.
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.
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.