.) Consider one of your credit cards. What is the balance? How is the minimum monthly payment determined? What would be the minimum payment? How much of the minimum payment goes towards interest? How much of the minimum payment goes towards the principal? Please write out the mathematical portion to show how each step determines the answer you come up with.
2). Examine the terms of a credit card or other revolving debt. Are there other charges that the credit card company is applying to that account? Is this account receiving a special rate for a limited time? Does this card charge an annual service charge or an inactivity fee? Answer each part.
3). Examine this same credit card bill (or other revolving debt) and see how long it will take to pay off this debt if you paid only the minimum payments (you can also use an online calculator like the one athttp://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx). What steps could you take to pay off this credit card (or debt) sooner? Show the mathematical steps to determine the percentage of the principal and what you need to pay down in order to pay off this credit card in 6 months.
4.) What advice concerning the use of credit cards and the fees they charge would you provide to a young adult planning on getting a credit card?
Make sure you respond to and answer each part in mathematical work and in word sentences to show how you arrived at each total and why. This needs to be a word document only including the math portions. Page length as needed to complete and answer all parts.