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MATH 117 Finance Mini-Project Credit Card "Check the Interest" You have been exploring the applications and computations of interest in the finance unit of our course. Bank savings and credit card accounts are our most frequent exposures to this type of financial mathematics. In this project, you will be asked to calculate and forecast interest earnings or charges for one of your accounts. You are to select either a savings account or a credit card account that you own or use currently. Print out a recent month's statement of activity, being sure that it shows transactions and the APR of the account clearly (Of course, block out any personal information.). The monthly statement you select must have a minimum of five transactions with different transaction dates for the statement period. You will analyze this monthly statement as follows: 1. Determine the average daily balance of the account for the month. Show the necessary work for this computation as we have done in class. (Determine the number of days by using the "statement opening" and "statement closing dates provided in your monthly statement). 2. Given your account's APR, determine how much interest is charged to your account for that month. (If you are unable to obtain an APR (Annualized/Annual Percentage Rate) for your account, contact your credit card company or bank for the information) 3. If the bank decides to decrease the APR of your account by 20%, how much interest would then be charged for the current month? 4. If instead the bank increases the original APR of the account by 10 percentage points, how much interest would then be charged for the current month? 5. Find some websites that compare interest rates available for accounts like yours (obtain at a minimum two other accounts). What is the range of rates being offered currently? What is the best deal? How does it compare to your account? Project Format: Title Page Summary of your Findings Copy of your Account Statement Printouts of Related Accounts (as required in #5) Work + Calculations MATH 117 Finance Mini-Project Credit Card "Check the Interest" You have been exploring the applications and computations of interest in the finance unit of our course. Bank savings and credit card accounts are our most frequent exposures to this type of financial mathematics. In this project, you will be asked to calculate and forecast interest earnings or charges for one of your accounts. You are to select either a savings account or a credit card account that you own or use currently. Print out a recent month's statement of activity, being sure that it shows transactions and the APR of the account clearly (Of course, block out any personal information.). The monthly statement you select must have a minimum of five transactions with different transaction dates for the statement period. You will analyze this monthly statement as follows: 1. Determine the average daily balance of the account for the month. Show the necessary work for this computation as we have done in class. (Determine the number of days by using the "statement opening" and "statement closing dates provided in your monthly statement). 2. Given your account's APR, determine how much interest is charged to your account for that month. (If you are unable to obtain an APR (Annualized/Annual Percentage Rate) for your account, contact your credit card company or bank for the information) 3. If the bank decides to decrease the APR of your account by 20%, how much interest would then be charged for the current month? 4. If instead the bank increases the original APR of the account by 10 percentage points, how much interest would then be charged for the current month? 5. Find some websites that compare interest rates available for accounts like yours (obtain at a minimum two other accounts). What is the range of rates being offered currently? What is the best deal? How does it compare to your account? Project Format: Title Page Summary of your Findings Copy of your Account Statement Printouts of Related Accounts (as required in #5) Work + Calculations

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