Card Name (APR %) Existing Balance Credit Limit Mark2 (6.5%) $475.00 $3,000.00 Bee4 (10.1%) $1,311.48 $2,500.00 You have $400.00 each month to pay off these two credit cards. You decide to pay only the interest on the lower interest card and the remaining amount to the higher interest card. Complete the following two tables to help you. Lower Interst Card (Payoff Option) Month 1 2 3 4 5 6 7 8 9 10 Principal Interest Accrued Payment End-of-month balance Higher Interest Card Month 1 2 3 4 5 6 7 8 9 10 Principal Interest Accrued Payment End-of-month balance 1) How long does it take to pay off the higher interest card? 2) What is the amount of the last payment on the higher interest card? Why? 3) At the end of the month that you pay off the higher interest card, after you have started to pay down your debt on the lower interest card, what is the balance of the lower interest card? Why? 4) Rework the problem so that you pay off the lower interest card first. 5) How much money do you save by paying off the higher interest card first?

You have $400.00 each month to payoff these 2 credit cards. You decide to pay only the interest on the lowest interest card and the remaining amount to the other card. Complete the following two tables to help you answer questions 1–3.

Higher-Interest Card (Payoff Option)

Month 1 2 3 4 5 6 7 8 9 10

Principal 1311.48 1074.82 814.26 527.38 211.53

Interest accrued 132.46 108.56 82.24 53.27 21.36

Payment (on due date) 369.12 369.12 369.12 369.12 232.89

End-of-month balance 1074.82 814.26 527.38 211.53 0

Lower-Interest Card

Month 1 2 3 4 5 6 7 8 9 10

Principal 475 475 475 475 475 338.77

Interest accrued 30.88 30.88 30.88 30.88 30.88 22.02

Payment (on due date) 30.88 30.88 30.88 30.88 167.11 360.79

End-of-month balance 475 475 475 475 338.77 0

Step-by-step explanation:

I think this is correct. I am so sorry if its incorrect but this makes more sense than the other answer on here