Propose a restructured payment plan on Jen and Luke’s credit card payments to help them pay off their credit cards sooner and with less interest payments. To keep things simple, you may not move balances from one card to another or assume a new card is opened.
Assume Visa requires a $52.50 minimum monthly payment; Discover requires a $110.82 minimum monthly payment; AMEX requires a $229.17 minimum monthly payment.
Update your workbook to illustrate the new repayment plan and answer the following questions:
- If Jen and Luke only paid the minimum required on their cards, how much total interest would they have paid when the final card balance is $0?
- Compared to the minimum payment plan in 1), how much money did they save with the new payment plan?
- Compare the Statement of Financial Positions from the original and the recommended. What is the “wealth effect” of our restructured debt payments?
In attach is my previous work for the same case and it is the file used in this question
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