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 you answer questions 1–3.

higher-interest card (payoff option)
month 1 2 3 4 5 6 7 8 9 10
principal 2138.90 1757.52 1373 985.01 593.63 198.82
interest accrued 18.72 15.38 12.01 8.62 5.19 1.74
payment (on due date) 400 400 400 400 400 200.56
end-of-month balance 1757.52 1373 985.01 593.63 198.82 0

lower-interest card
month 1 2 3 4 5 6 7 8 9 10
principal 1692.45 1304.02 919.10 525.35 128.92
interest accrued 11.57 8.87 6.25 3.57 0.88
payment (on due date) 400 400 400 400 129.80
end-of-month balance 1304.02 919.10 525.35 128.92 0

1) how long does it take to pay off the higher-interest card? it takes 6 months.
2) what is the amount of the last payment on the higher-interest card? why? $200.56 was the last payment because they paid $400 each month until the amount due was lower than $400.
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?

complete the following two tables to you answer questions 4–5.
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?

lower interest card (payoff option)
month 1 2 3 4 5 6 7 8 9 10
principal
interest accrued
payment (on due date)
end-of-month balance

higher interest card
month 1 2 3 4 5 6 7 8 9 10
principal
interest accrued
payment (on due date)
end-of-month balance

be sure to include in your response:
• all parts of the tables are complete and calculations correct
• the answers to the additional questions