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Question: If the purchase amount is "Php 100,000" and all given remains the same, what would be the total interest? Show it using the table similar to given. please show step by step on how to compute it in excel

Computed based on Daily Balance using 30 days per month (or 360 days annually)

Effective Interest Rate per month = Average Monthly Interest divided by Average Principal Balance

Assumptions:

- Cardholder has no outstanding balance on his first statement and makes a transaction of P20,000 during the month.

- Cardholder will pay only the Minimum Amount Due, including the interest charges posted every statement cycle on his/her due date.

Month Retail Purchase Total Payment Interest Outstanding Principal Balance Total Outstanding Balance 1 11 20,000 0 0 20,000 20,000 2 714 646 19,286 19,932 3 1,334 702 18.597 19,300 4 1,366 658 17,934 18,592 5 1.298 654 17,293 17,948 6 1.272 612 16.676 17,288 7 1,207 608 16,081 16,689 8 1,182 587 15,507 16,094 9 1.141 549 14,953 15,502 10 1,082 545 14.419 14.965 11 1,060 510 13,904 14,415 12 1.007 507 13,408 13,915 Credit Cards Sample Effective Interest Rate Computation Purchase Date First day after statement date Purchase Amount Php 20.000 Payment Due 20 days after statement date Minimum Amount Due 3.57% of the outstanding balance Total Interest Php 6,578.93 Average Outstanding Balance Php 17.066 Finance Charge per month: 3,50% Effective Interest Rate (per month): 3.2132 Month Retail Purchase Total Payment Interest Outstanding Principal Balance Total Outstanding Balance 1 11 20,000 0 0 20,000 20,000 2 714 646 19,286 19,932 3 1,334 702 18.597 19,300 4 1,366 658 17,934 18,592 5 1.298 654 17,293 17,948 6 1.272 612 16.676 17,288 7 1,207 608 16,081 16,689 8 1,182 587 15,507 16,094 9 1.141 549 14,953 15,502 10 1,082 545 14.419 14.965 11 1,060 510 13,904 14,415 12 1.007 507 13,408 13,915 Credit Cards Sample Effective Interest Rate Computation Purchase Date First day after statement date Purchase Amount Php 20.000 Payment Due 20 days after statement date Minimum Amount Due 3.57% of the outstanding balance Total Interest Php 6,578.93 Average Outstanding Balance Php 17.066 Finance Charge per month: 3,50% Effective Interest Rate (per month): 3.2132

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