Credit Card Excel

Credit Card
Project Description:
In this problem, you will investigate two credit cards that you can choose to make payment and determine which one is better.
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values.

1 Start Excel. Download and open the workbook named:
Chapter_9-5_Credit_Card_Start
2 In cell C8, enter the balance at the beginning of month 2. Fill cell C8 down the column to cell C36. Format cells C8:C36 as Currency with 2 decimal places.
Note: The values in cells C8:C36 will automatically change after completing the next steps.
3 In cell E7, calculate the amount of interest payment for month 1. Fill cell E7 down the column to cell E36. Format cells E7:E36 as Currency with 2 decimal places.
4 In cell F7, calculate the new balance at the end of month 1. Fill cell F7 down the column to cell F36. Format cells F7:F36 as Currency with 2 decimal places.
5 In cell I18, determine the month in which the ending balance is negative for the first time.
6 In cell I22, calculate how much you will spend in total to pay off the old credit card. Format cell I22 as Currency with 2 decimal places.
7 In cell C42, calculate the balance at the beginning of month 1 for the new card. Format cell C42 as Currency with 2 decimal places.
8 In cell C43, enter the balance at the beginning of month 2 for the new card. Fill cell C43 down the column to cell C71. Format cells C43:C71 as Currency with 2 decimal places.
Note: The values in cells C43:C71 will automatically change after completing the next steps.
9 In cell E8, calculate the amount of interest payment for month 7 for the new card. Fill in cell E48 down the column to cell E71. Format cells E48:E71 as Currency with 2 decimal places.
Note: The values in cells E48:E71 will automatically change after completing the next step.
10 In cell F42, calculate the balance at the end of month 1 for the new card. Fill cell F42 down the column to cell F71. Format cells F42:F36 as Currency with 2 decimal places.
11 In cell I51, determine the month in which the ending balance for the new card is negative for the first time.
12 In cell I55, calculate how much you will spend in total to pay off the new credit card. Format cell I55 as Currency with 2 decimal places.
13 In cell I59, determine whether you should switch cards.
14 Save your file and submit.

Assume you have a $3,500 balance on a credit card with a 14.5% APR. You are only able to make $150 payments each month and you get an offer for a new credit card which will give you 0% on transferred balances for 6 months and then switch to a 16.7% rate. They will charge you 3% on any balance you transfer.
a.) To determine how long it will take you to pay off the current card, complete the spreadsheet by computing the balance, interest, and new balance each month. Remember that periodic interest is charged on the balance at the beginning of each month using the periodic interest rate. Format as currency with two decimal places.
b.) How many months will it take to pay off this card? Answer the first month that has a negative ending balance.
c.) How much will you spend in total to pay off this card? Note that you will be charged interest in the last month but you will not owe a full $150. Format as currency with two decimal places.
d.) Now complete a spreadsheet which tracks how long it will take you to pay off the new card assuming you transfer the entire $3,500 balance. Remember they will add 3% of the $3,500 onto what you owe, and you will pay no interest for 6 months. Format as currency with two decimal places.
e.) How many months will it take to pay off this card? Answer the first month that has a negative ending balance.
f.) How much will you spend in total to pay off this card? Note that you will be charged interest in the last month but you will not owe a full $150. Format as currency with two decimal places.
g.) Should you switch cards?