The question listed on Scenario 1 is as follows:
"In this scenario we purchased 1 item for $1000. (This could be a new TV, summer vacation, Laptop, etc.) We did not have the cash at the time so we charged it to our Visa. This particular credit card requires that we make a minimum payment of 13% each month. It also has an APR of 10%. Fill out the chart to find out how much you have paid at the end of the year and if you have a remaining balance. "
The chart is a great way for students to discover, by hand, the problems with only paying the minimum balance on a credit card. I suggest going over a couple of rows with them so they understand how the chart works.
This chart can be used as a stand alone activity or with the other scenarios I have listed. It would be particularly helpful to use the Excel Debt Calculator that I have listed as well. Please feel free to email me if you have any questions.
Credit Card Debt Worksheet - Scenario 1
by Dana Burrows
is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License