3. Use Sydney's Minimum Payment Summary to answer the statements that follow.
1 answer:
Explanation:
<u>Part 1</u>
The total monthly payment will remain level at the amount currently scheduled for Month 1. The revised totals are shown at the bottom of the attachment.
When Card C is fully paid, the same total payment will continue to be used until all card debts are paid.
__
<u>Part 2</u>
The excess over the sum of minimum payments will be applied to Card C (24% rate). The minimum payment will continue to be made for the other credit cards. The revised Card C payments are shown at the bottom of the attachment.
When Card C is fully paid, the excess over the sum of minimum payments will be applied to Card B (20% rate).
_____
<em>Comment on the question</em>
You can't think too much about the given numbers. The minimum payment amounts given here decrease way faster than you would expect. For example, the $1.36 decrease in the minimum payment for Card A from Month 1 to Month 2 corresponds to a balance decrease of more than $90 when the interest rate is 1.5% per month. That is not possible if the payment is only $32.19.
Apparently, the question is not about the actual numbers. Rather, it is about the strategy of debt reduction. Some (bogus) numbers are given here just so you have something to think about.
The approach described in the problem statement has been given the name "debt avalanche" to distinguish the approach from Dave Ramsey's "debt snowball." The "debt snowball" approach pays off the <em>minimum balance</em> first, not the highest interest rate. It also includes some extra cash above the sum of minimum balances. ($100 is suggested; more is better.) The psychological effect of the quick win is considered to be more important than the extra cost of carrying the higher-rate debt for a longer period.
You might be interested in
A. (Assume both planets are aligned with the sun and are on the same side of the sun.) Show your work and provide your answer in scientific notation. Jupiter = 778,500,000 km from sun. Venus = 108,200,000 km from sun.
778,500,000 – 108,200,000 = 670,300,000
It would need to travel 670,300,000 km/ 6.703 x 10 with a 8 squared km (as shown below)
B.Mercury, Venus, and Earth are the three planets closest to the sun. Would their combined distance from the sun be greater or less than the distance from the sun to Neptune? Show your work and justify your answer. Mercury = 57,909,000 km Venus = 108,200,000 km Earth = 149,600,000 km 57,909,000 + 108,200,000 + 149,600,000 = 315,709,000 Less because 315,709,000 km is less than 4,498,000,000 km
C.If Earth was 10 times farther away from the sun than it is now, which planet would it be closest to? (Assume all the planets are aligned with the sun and are on the same side of the sun.) Compare Earth's new distance to that planet. How far apart would they be in standard notation? How far apart in scientific notation? Show your work. Earth = 149,600,000 km 149,600,000 x 10 = 1,496,000,000 Earth’s new distance = 1,496,000,000 Earth would be closest to Saturn. 1,496,000,000 – 1,429,000,000 = 67,000,000
They would be 67,000,000 km apart
Scientific notation: 6.7 x 10 with a 7 squared km (sorry I can't write this to show this figure but see below as you should write it exactly like how I typed it below followed by km)
D. The space shuttle travels at about 28,000 km per hour. Using that information, estimate how many hours it will take the shuttle to reach Saturn from Earth. (Assume both planets are aligned with the sun and are on the same side of the sun.) Show your work. Convert your answer into scientific notation if necessary. Earth = 149,600,000 km
Saturn = 1,429,000,000 km
1,429,000,000 - 149,600,000 = 1,279,400,000
1,279,400,000 km
1,279,400,000 ÷ 28,000 = 45,692.8
Estimated hours it will take the shuttle to reach Saturn from Earth = 45,693
Scientific notation: 4.5693 x 10 with a 4 squared
(same with this one, it should be written as I have it shown below instead of how I first tried to explain it.)
778,500,000 – 108,200,000 = 670,300,000
It would need to travel 670,300,000 km/ 6.703 x 10 with a 8 squared km (as shown below)
B.Mercury, Venus, and Earth are the three planets closest to the sun. Would their combined distance from the sun be greater or less than the distance from the sun to Neptune? Show your work and justify your answer. Mercury = 57,909,000 km Venus = 108,200,000 km Earth = 149,600,000 km 57,909,000 + 108,200,000 + 149,600,000 = 315,709,000 Less because 315,709,000 km is less than 4,498,000,000 km
C.If Earth was 10 times farther away from the sun than it is now, which planet would it be closest to? (Assume all the planets are aligned with the sun and are on the same side of the sun.) Compare Earth's new distance to that planet. How far apart would they be in standard notation? How far apart in scientific notation? Show your work. Earth = 149,600,000 km 149,600,000 x 10 = 1,496,000,000 Earth’s new distance = 1,496,000,000 Earth would be closest to Saturn. 1,496,000,000 – 1,429,000,000 = 67,000,000
They would be 67,000,000 km apart
Scientific notation: 6.7 x 10 with a 7 squared km (sorry I can't write this to show this figure but see below as you should write it exactly like how I typed it below followed by km)
D. The space shuttle travels at about 28,000 km per hour. Using that information, estimate how many hours it will take the shuttle to reach Saturn from Earth. (Assume both planets are aligned with the sun and are on the same side of the sun.) Show your work. Convert your answer into scientific notation if necessary. Earth = 149,600,000 km
Saturn = 1,429,000,000 km
1,429,000,000 - 149,600,000 = 1,279,400,000
1,279,400,000 km
1,279,400,000 ÷ 28,000 = 45,692.8
Estimated hours it will take the shuttle to reach Saturn from Earth = 45,693
Scientific notation: 4.5693 x 10 with a 4 squared
(same with this one, it should be written as I have it shown below instead of how I first tried to explain it.)