Question

I don't get what problem 2, assignment 1 is about (the credit card assignemnt). Why not just take the balance + annual interest rate * balance and divide ist by 12... I don't understand the task. I solved problem 1, but 2 just doens't make sense to me :/

Answer 1

The interest rate is compounded after each payment. Put a print statement after each month when you finish this exercise and you will see the same payment has a different percentage which goes to interest and principal with each month.

Answer 2

I meant the interest is compounded, the rate stays the same but the amount is adjusted after each payment.