Credit Card Interest Simulation
Description
This interactive simulation of compound interest begins with a $10,000 balance on a credit card. The monthly payment amount (default $500) represented by each dollar bill icon can be adjusted with the Payment slider bar.
Reference this Simulation
To reference this educational web simulation according to the APA style for Web references, use:
Lampotang S, Carr RM, Lizdas D, Gravenstein N (2006): Web Simulation of Credit Card Interest Retrieved <insert date of retrieval here>, from University of Florida Department of Anesthesiology Virtual Anesthesia Machine Web site: http://vam.anest.ufl.edu/maren/interest.html
Simulation Type
Shockwave Get Shockwave Player Here
Minimum Suggested Requirements
How to use this Simulation
The interest rate (default 25% APR) can be changed with the Interest slider bar. Payments can be added by clicking on the piggy bank and dragging a dollar bill icon onto a desired location on the timeline. Similarly, payment can be skipped by clicking and dragging a dollar bill icon away from the timeline. This simulation predicts how given payments and interest rate will affect the balance over time. This simulation is intended as a free community service to teach personal finance and the dynamics of compound interest.
