Microsoft Office Tutorials and References
In Depth Information
Figure 11-2: This chart shows how the interest and principal amounts vary during the payment periods of a
Credit card payments
Do you ever wonder how long it takes to pay off a credit card balance if you make the minimum payment
amount each month? Figure 11-3 shows a worksheet set up to make this type of calculation.
The workbook shown in Figure 11-3 is available at this book's website. The file is
named credit card payments.xlsx.
Range B1:B5 stores input values. In this example, the credit card has a balance of $1,000, and the lender
charges a 21.25% annual percentage rate (APR). The minimum payment is 2.00% (typical of many credit card
lenders). Therefore, the minimum payment amount for this example is $20. You can enter a different payment
amount in cell B5, but it must be large enough to pay off the loan. For example, you may choose to pay $50 per