Geoffrey's Computer Payments
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1. Geoffrey Crayon buys a \$3,000 computer. To keep his bookkeeping simple, he starts a new credit card
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that charges 22% annual interest per year (compounded monthly) and will use the card for nothing else.
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Geoffrey pays \$400 per month until the balance is paid off. Finish the table below to find his total interest in dollars.
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MonthOld BalancePayment
Interest Due On
Interest Rate
Interest Amount
New Balance
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1\$3,000.00\$400.00\$2,600.001.83%\$47.67\$2,647.67
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2\$2,647.67\$400.00\$2,247.671.83%\$41.21\$2,288.87
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3\$2,288.87\$400.00\$1,888.871.83%\$34.63\$1,923.50
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4\$1,923.50\$400.00\$1,523.501.83%\$27.93\$1,551.43
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5\$1,551.43\$400.00\$1,151.431.83%\$21.11\$1,172.54
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6\$1,172.54\$400.00\$772.541.83%\$14.16\$786.71
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7\$786.71\$400.00\$386.711.83%\$7.09\$393.80
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8\$393.80\$393.80\$0.001.83%\$0.00\$0.00
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\$3,193.80Total Paid\$193.80Total Interest
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