Challenge #7
The code found here shows the interest and minimum payment for a credit card balance over a year at 5%. Choose an amount, greater than $200, to enter on the credit card. After a year, how much interest have you paid and how much is left of the card if you only make the minimum payment?
Five percent is an unrealistic interest rate for a credit card. Modify the program so that it reflects a more realistic interest rate of 20%. Choose the same amount to put on the card that you chose earlier. After a year, how much interest have you paid and how much is left of the card if you only make the minimum payment?
What conclusion can you make about having to pay money back at higher interest rates?
Extension:
1. Modify the program so it determines the amount of time it takes to pay off the balance if you only make the minimum payment every month. How much money have you spent in total?
MTH1W Curriculum Links:
C2.3 Read code to predict its outcome, and alter code to adjust constraints, parameters, and outcomes to represent a similar or new mathematical situation
F1.3 Compare the effects that different interest rates, lengths of borrowing time, ways in which interest is calculated, and amounts of down payments have on the overall costs associated with purchasing goods or services, using appropriate tools