Tim E. answered • 11/12/15
Tutor
5.0
(45)
Comm. College & High School Math, Physics - retired Aerospace Engr
INTEREST = 24% APR (24/12 = 2% /MON or (0.02)
*** FOR EACH MONTH ***
REM = BALANCE - PAYMENT
INT = 0.02 * REM
NEW BAL = REM + INT
BAL PAYMT REM INT NEW BAL
$82.85 $10.00 $72.85 $1.46 $74.31
$74.31 $10.00 $64.31 $1.29 $65.59
$65.59 $10.00 $55.59 $1.11 $56.71
$56.71 $10.00 $46.71 $0.93 $47.64
$47.64 $10.00 $37.64 $0.75 $38.39
$38.39 $10.00 $28.39 $0.57 $28.96
$28.96 $10.00 $18.96 $0.38 $19.34
$19.34 $10.00 $9.34 $0.19 $9.53
$9.53 $9.53
$74.31 $10.00 $64.31 $1.29 $65.59
$65.59 $10.00 $55.59 $1.11 $56.71
$56.71 $10.00 $46.71 $0.93 $47.64
$47.64 $10.00 $37.64 $0.75 $38.39
$38.39 $10.00 $28.39 $0.57 $28.96
$28.96 $10.00 $18.96 $0.38 $19.34
$19.34 $10.00 $9.34 $0.19 $9.53
$9.53 $9.53
Tim E.
I created this table in EXCEL, each cell operated on the numbers with longer (or more) precision, then only displayed the truncated number. It very well could be a one cent diff is the result of "round off", and it operates on (such as mult by an interest rate) the value rounded to the nearest cent. I doubt they would ding your answer either way.
For instance, here's the table to 4 places of precision. (and of course, a bill is never to something smaller than 0.01)
BAL PAYMT REM INT NEW BAL
82.8500 10.0000 72.8500 1.4570 74.3070
74.3070 10.0000 64.3070 1.2861 65.5931
65.5931 10.0000 55.5931 1.1119 56.7050
56.7050 10.0000 46.7050 0.9341 47.6391
47.6391 10.0000 37.6391 0.7528 38.3919
38.3919 10.0000 28.3919 0.5678 28.9597
28.9597 10.0000 18.9597 0.3792 19.3389
19.3389 10.0000 9.3389 0.1868 9.5257
9.5257 9.5257
74.3070 10.0000 64.3070 1.2861 65.5931
65.5931 10.0000 55.5931 1.1119 56.7050
56.7050 10.0000 46.7050 0.9341 47.6391
47.6391 10.0000 37.6391 0.7528 38.3919
38.3919 10.0000 28.3919 0.5678 28.9597
28.9597 10.0000 18.9597 0.3792 19.3389
19.3389 10.0000 9.3389 0.1868 9.5257
9.5257 9.5257
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11/12/15
Tim E.
(you may get this twice, because when I hit save it didn't show up)
The difference of 0.01 is round off. I put in the table from an EXCEL spreadsheet, where the numbers added, subtracted and multiplied have a higher precision than 2 places (or 0.01). I only displayed them in two decimal places (cents). I don't think the number precision will be a problem, because I don't know if in banking the intermediate calculations are each rounded to two places or not (??). (Although, we know we never are billed for an amount with precision less than 0.01). I wouldn't worry about the 0.01 diff.
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11/12/15
Tim E.
by the way, here's the same table displaying a 4 digit decimal (format change in EXCEL)
BAL PAYMT REM INT NEW BAL
82.8500 10.0000 72.8500 1.4570 74.3070
74.3070 10.0000 64.3070 1.2861 65.5931
65.5931 10.0000 55.5931 1.1119 56.7050
56.7050 10.0000 46.7050 0.9341 47.6391
47.6391 10.0000 37.6391 0.7528 38.3919
38.3919 10.0000 28.3919 0.5678 28.9597
28.9597 10.0000 18.9597 0.3792 19.3389
19.3389 10.0000 9.3389 0.1868 9.5257
9.5257 9.53
74.3070 10.0000 64.3070 1.2861 65.5931
65.5931 10.0000 55.5931 1.1119 56.7050
56.7050 10.0000 46.7050 0.9341 47.6391
47.6391 10.0000 37.6391 0.7528 38.3919
38.3919 10.0000 28.3919 0.5678 28.9597
28.9597 10.0000 18.9597 0.3792 19.3389
19.3389 10.0000 9.3389 0.1868 9.5257
9.5257 9.53
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11/12/15
Tim E.
Didn't see your last question. but the TOTAL AMOUNT PAID = $89.53 (sum of 2nd column)
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11/12/15
Anthony H.
That is what I got too, thank you!!
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11/12/15
Anthony H.
11/12/15