NGPF
Next Gen
Personal
Finance
NGPF Activity Bank
Types of Credit #6
Spanish Version
CALCULATE: Shopping with Interest: Black Friday Edition
This activity will illustrate how even smaller purchases cost more when you purchase on a credit card and do not pay the
balance in full each month.
For this activity, we will use an online credit card calculator; open it in another window.
Full link: https://www.creditkarma.com/calculators/debtrepayment
We also make these assumptions:
• Your credit card's interest rate (APR) is 19.9%.
•
The minimum payment due each month is 3% of your starting balance.
1. On Black Friday, you spent $1,275 on your Target Credit Card and were billed for that amount at the end of
November. If you pay the full balance before your bill is due, how much will you pay in interest?
2. You spent $10,275 on Black Friday and charged it all to your Target Credit Card. You pay the full balance before
the bill is due, how much will you pay in interest?