How do I prepare a debt acceleration worksheet in Excel?

[Guest]

Goal is to pay off all two credit card balances asap. I have $500 per month
available to pay both monthly card balances. $250 is used to pay the first
card (10% interest rate, balance $3000), and $250 used to pay the second card
(8% interest rate, $5000). Once the first card is paid off, the entire $500
per month would be used to pay off the second credit card. I need to create
a spreadsheet that will tell me how long it will take me to pay off both
debts.

Using Microsoft XP and Excel 2002

 

[Jezebel]

Do your own homework.

 

[Harlan Grove]

Goal is to pay off all two credit card balances asap. I have $500 per
month available to pay both monthly card balances. $250 is used to pay
the first card (10% interest rate, balance $3000), and $250 used to pay
the second card (8% interest rate, $5000). Once the first card is paid
off, the entire $500 per month would be used to pay off the second
credit card. . . .

Differring rate problems always have the same general answer.

Make the minimum payments each period on the card with the lower interest
rate and use the balance of the $500 to pay down the card with the higher
rate as quickly as possible. Then pay off the card with the lower rate. It
may take the same number of months to pay off both cards, but the final
payment will be minimized this way.

Even if this is homework, you'd still need to prove the general answer. And
if it is homework, shouldn't you figure out how to set up the worksheet
yourself? If it's not homework, why do you need a worksheet when the answer
is simple (if you don't believe me, ask a credit counsellor).