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
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 importance of learning percent applications is so it can help you in the real world. For example, 5% off a $10 pants and 8% percent tax. Also, my parents are opening a savings account for me and their might be a fee for opening the account per month/ year.

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.