# MasterCard, Module 4 LASA Template help

Module 4 LASA Template
Where you see highlights is where you place your final answers as instructed below.
Again, please do not erase anything and simply place your work and answers where shown below. Then, save THIS document as your file with your name, and submit to the dropbox in class.
***Type your intro paragraph here (min. 150 words) Please follow APA format for your intro paragraph. APA format is size 12 font, double spaced, clearly readable font such as Times New Roman. ***
So what goes in the intro? Great question! This is open-ended. The intro paragraph is where you introduce the topic to the reader. What information are you presenting here in the submission? What are some points about debt/credit that you would like to make? Why is this assignment important? Etc.
Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of \$5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)?
!!!First, remember you are using an APR of 15.53%!!!
What is the amount of interest per month? Formula: (APR*principal)/12Place your answer here
What is the amount applied to reduce the principal?Place your answer here
2. Consider one of your credit cards. What is the balance? How is the minimum monthly payment determined? What would be the minimum payment? How much of the minimum payment goes towards interest? How much of the minimum payment goes towards the principal? If you do not want to share an actual balance or do not have a credit card, calculate these amounts using an imaginary credit card balance.
How is the minimum monthly payment determined? Example: 2% of the principalPlace your answer here
How much of the minimum monthly payment goes towards interest?
How much of the minimum monthly payment goes towards the principal?
3.Now, examine the terms of one of your credit cards or other revolving debt. Are there other charges that the credit card company is applying to your account? Are you receiving a special rate for a limited time? Does your card charge an annual service charge or an inactivity fee?
Are there other charges that the credit card company is applying to your account?
Are you receiving a special rate for a limited time? Place your answer here
Does your card charge an annual service charge or an inactivity fee?
Examine a credit card bill (or other revolving debt) and see how long it will take to pay off your debt if you paid only the minimum payments.
http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx
What steps could you take to pay off this credit card (or debt) sooner? Determine the percentage of the principal that you need to pay down in order to pay off the credit card in the time frame of your choosing.
What information did you enter into the online calculator?
Place your answer here, which will include the balance, interest rate, and minimum payment per month
How long will it take to pay off the debt if you only paid the minimum payments?
Place your answer here; this will be the value that the calculator shows you
What steps could you take to pay off this credit card (or debt) sooner?