The explanation for a Spreadsheet week 17

How do you set up a spreadsheet!

19  José wants to buy a stereo for $650 and pay for it using a credit card that has an Annual Percentage Rate of 19.85% and a periodic interest rate of 1.65%. If José pays $21.45 each month:

1. How long will it take him to pay for the stereo? 2. What is the total amount José will pay for the stereo? 3. What is José’s total cost of using credit?

Stero APR Periodic Int. Rate PaymentsJan 650 0.1985 0.0165FebMarchApril

Look at this formula. Write on your paper A & B

Write the answer to the following questions.

a. What amount of the Stereo price?

b. What is the APR amount?c. What is the Total?

Stero APR Total Periodic Int. Rate Total -PIR Payments

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ JanFebMarchApril

What is a periodic interest rate?

Periodic interest rate. The periodic interest rate,

sometimes called the nominal rate, is the interest rate a

lender charges on the amount you borrow.

Stero APR Total Periodic Int. Rate Payments650.00$ 0.1985 129.03$ 0.0165 21.45$

JanFebMarchApril

c. What mathematical computation did you use to get this number?

Stero APR Total Periodic Int. Rate Total Payments

650.00$ 0.1985 129.03$ 0.0165 21.45$ JanFebMarchApril

d. Why did I place this TOTAL here?

Stero APR Total Periodic Int. Rate Total -PIR Payments

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ JanFebMarchApril

e. Write the mathematical computation or formula for the “Total – PIR”f. How much is the payment?

Stero APR Total Periodic Int. Rate Total -PIR Payments Balance

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ 768.30$ JanFebMarchApril

f. How did I get this balance? Write the formula on your paper.

Stero APR Total Periodic Int. Rate Total -PIR Payments Balance

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ 768.30$ Jan 768.30$ FebMarchApril

g. Why did I bring this amount to here? Explain.

Stero APR Total Periodic Int. Rate Total -PIR Payments Balance

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ 768.30$ Jan 768.30$ 0.1985 152.51$ FebMarchApril

h. How did I get this amount. Write down the formula.

Stero APR Total Periodic Int. Rate Total -PIR Payments Balance

650.00$ 0.1985 129.03$ 0.0165 10.73$ 21.45$ 768.30$ Jan 768.30$ 0.1985 152.51$ 0.0165 -$ 21.45$ 899.36$ FebMarchApril

h. Now it is your turn to calculate the amounts! You will need to do this for all last weeks assignments.

Now change your calculations to $60 per month!

If José makes monthly payments of $60:

4. How many months will it take for José to pay off the stereo?

5. What is the total amount José will pay for the stereo?

6. What is José’s total cost of using credit?