I was wondering if anyone could help me with a minimum payment calculation

on my spreadsheet for my Credit card

I have the following Cells

Credit Limit (L2) £3500

Credit Card Amount Owed (L4) £3200

Credit Card APR (L6) 17.9%

Minimum Amount (L8) 2%

And then I have a cell (L10) Minimum Payment and it is in this Cell I wantit

to say what my minimum payment will be

If we assume (probably incorrectly; see below) that Minimum Payment

(L10) is simply the Minimum Percentage (L8) of the Amount Owed (L4),

then:

=roundup(L8*L4, 2)

And that might be good enough for a classroom assignment. But in real

life, you need to consult your credit card agreement to see how the

minimum payment is determined. Here is what mine says:

If the Amount Owed is $10 or less, the Minimum Payment due is the

Amount Owed. Otherwise, the Minimum Payment due is the largest

of the following: $10; 2% of the Amount Owed; or the sum of 1% of

the Amount Owed, plus the total billed finance charges, plus the

total

billed late fees.

The might be implemented as follows:

=if(L4<=10, L4, roundup(max(10, L4*L10, L12*L4 + L14 + L16), 2) )

where I have added L12 (1%), L14 (finance charges), and L16 (late

fees). L14 and L16 come from your periodic statement.

You might approximate L14 by L4*L6/12, if you make monthly payments.

But the periodic finance charges might be computed in a far more

complex manner. In my case, the monthly finance charge is the sum of

the daily finance charges. The daily finance charge is the daily

balance times the daily rate, which is L6/365 in my case. Since the

daily finance charge is added to each daily balance, the daily finance

charge is compounded. Of the course, the daily balance depends on

your spending pattern. But the monthly finance charge might be

estimated FV(L6/365, 365/12, -L4*12/365, 0, 1) - L4.

Beware that that might underestimate the monthly finance charge if

credits tend to occur more toward the beginning of the month. The

most pessimistic estimate of monthly finance charges in my case might

be L4*(L6/365)^(365/12).

(Actually, the __most__ pessimistic estimate is L4*(L6/365)^31.)

Obviously, it is easier to simply take the finance charge from the

statement.