Question

Can someone tell me what im doing wrong ? pic below

Answer 1

check under column 2

Answer 2

so is everything else right??

Answer 3

Im confused

Answer 4

no, i checked only first and second ,to me second is incorrect.

Answer 5

so that means it all probably is. will you please explain the math to me then?

Answer 6

So the loan is for 1,853.42 correct?
It appears the interest is for 15.5% per month? (That seems very high)
And 2 monthly payments are made for 400 and then the rest are for 200?

Answer 7

yes

Answer 8

Do you have the original problem?
I'd like to know exactly what it is asking.

Answer 9

this is my updated chart, i tried again

Answer 10

"You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay $400.00 the first 2 months and then $200.00 until the bill is paid off. You pay the bill on the due date each month."

Answer 11

Okay - that's what I wanted to know.
For one thing the interest rate you are using is for an annual interest rate.

Answer 12

What im doing is im taking the principle, timesing it by 1.155, and then subtracting either 400 or 200. That was what my step dad told me to do, but then later said he didnt know it was annual, thought we were talking about compound and he doesnt know then either

Answer 13

Well since the percentage is annual you must convert it to monthly.
So it would be 15/12 = 0.01291666667
Making the multiplication factor 1.01291666667

Answer 14

where did the 15 and the 12 come from??

Answer 15

I'm sorry that should have been 15.5 - the ANNUAL interest rate
there are 12 months per years making the monthly rate
.01291666667

Answer 16

What do I then do with that number?

Answer 17

It's your multiplication factor.
Instead of using 1.155 (annual rate) use
1.01291666667 (monthly rate) instead.

Answer 18

the whole time??

Answer 19

Yes, for each month

Answer 20

Do I need to use that whole number each time or can i just use 1.01??

Answer 21

Use the whole number - your calculations will be more accurate.
Are you using something like Excel to generate those numbers?

Answer 22

no just my phone

Answer 23

it wont let me type out a number that long

Answer 24

Well then your phone is using some kind of electronic spreadsheet like Excel.

Answer 25

i got 1,877.36 and it should be decreasing

Answer 26

Okay I'll calculate it.

Answer 27

this is my whole screen

Answer 28

The way I calculate it is:

Balance Payment Sub-Total New Balance
1,853.42 400.00 1,453.42 1,472.19

Answer 29

The new balance is obtained by multiplying the sub-total by 1.01291666667
the monthly interest rate

Answer 30

what do you do to calculate those?

Answer 31

thank you for the help and patience - ive posted this and got home from two other people but they stopped helping me before I could understand, and my step dad doesnt get it either. its the weekend and i do online school so i cant get ahold of my teacher because hes not in the office and i have to have this done in the morning if i want to be able to get on the bus to take a trip to visit my long distance boyfriend.

Answer 32

got help**

Answer 33

Sub-Total is merely Balance minus payment
New balance = Sub-Total times 1.01291666667

Answer 34

i think your major problem was using the annual rate instead of the monthly

Answer 35

so, im sorry.. can we walk through how id calculate all of this in a dumbed down way?

Answer 36

Well, again, we start with the balance
Balance Payment Sub-Total New Balance
1,853.42 400.00 1,453.42 1,472.19
Subtracting the payment equals 1453.42
Then adding the monthly interest 1453.42 * 1.01291666667
equals 1472.19

Answer 37

So if thats the first column answer, Im going to try the second one and see if i got this now

Answer 38

Okay and I have figured it out using an electronic spreadsheet.
Let's see if we get the same answer.

Answer 39

1,086.04 was my answer

Answer 40

That's what I have too !!

Answer 41

thank you so much!! you have no idea. Can i just ask you however how id find my debt ratio at the end of this??

Answer 42

hmm I don't know the definition of debt ratio

Answer 43

thats okay, thank you for helping with everything you did!! have a good night. sorry that was so time consuming

Answer 44

It's okay - I've spent more time helping people (really)

Answer 45

Well I'll see you later annon1123 :-)

Answer 46

what do i do when i start getting to the end and can no longer take away 200 and i start getting negatives???