Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1000 (or spend $1000) on a credit card. How much will you owe in one month? 6 months if you pay nothing for 6 months?
Compute the 6 month cost in two ways:
- Make 6 monthly computations. Enter these as formulas in a spreadsheet. (The goal here is really getting you to use spreadsheets and formulas for computations.)
- Use the formula, A= 1000(1 + r)N where N = the number of periods (6) and r = the periodic interest rate = APR/12, where APR is the annual percentage rate.