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Aiden Wang presents his experience of purchasing a gaming laptop for $1,200 using a credit card. He compares two credit cards, ultimately finding that the American Express Blue Cash Everyday® Card would save him $168.09 in interest over three years compared to the Citi Simplicity® Card. Aiden emphasizes the importance of comparing credit card options and understanding simple interest.

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11 views10 pages

Presentation 1

Aiden Wang presents his experience of purchasing a gaming laptop for $1,200 using a credit card. He compares two credit cards, ultimately finding that the American Express Blue Cash Everyday® Card would save him $168.09 in interest over three years compared to the Citi Simplicity® Card. Aiden emphasizes the importance of comparing credit card options and understanding simple interest.

Uploaded by

c8431170
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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My Credit Card

Adventure
Aiden Wang 702
Introduction
Hi! My name is Aiden, and I recently opened a new credit card
to make a purchase of a brand-new gaming laptop! This
presentation will take you through the cost of my purchase,
the interest I’ll pay, and the total amount I’ll spend over the
next few years.
The Item I’m Buying
I have always wanted a high-performance gaming laptop to
play my favorite games and do schoolwork faster. After
researching, I found the perfect laptop for $1,200. Now, I will
find the perfect credit card for this purchase.
The Credit Card
Choosing the Right Credit Card

• Card Name: Citi Simplicity® Card


• APR (Annual Percentage Rate): 0% for the first 12 months,
then 23.62% on average
• Why I chose it: No late fees, no annual fee, and an
introductory 0% APR for 12 months
Simple Interest
The formula for Simple Interest: Simple Interest = Principal ×
Rate × Time

• P = Principal amount ($1,200)


• R = Interest rate (varies: 0% for the first 12 months, 23.62%
afterward)
• T = Time in years (3 years to pay off the laptop)
Calculating the Interest
• First 12 Months:
• Principal: $1,200
• Rate: 0%
• Time: 1 year
• Interest = $1,200 × 0 × 1 = $0
• Next 24 Months:
• Principal: $1,200
• Rate: 23.62% (0.2362)
• Time: 2 years
• Interest = $1,200 × 0.2362 × 2 = $566.88
• Total Interest Over 3 Years: $0 + $566.88 = $566.88
Comparing Credit Cards PT. 1
• Card 1: Citi Simplicity® Card (0% APR for 12 months, then 23.62%
average)
• Card 2: American Express Blue Cash Everyday® Card (0% APR for
15 months, then 18.99% average)

• Calculating Interest for Card 2:


• First 15 Months:
• Principal: $1,200
• Rate: 0%
• Time: 1.25 years
• Interest = $1,200 × 0 × 1.25 = $0
Comparing Credit Cards PT. 2
• Next 21 Months:
• Principal: $1,200
• Rate: 18.99% (0.1899)
• Time: 1.75 years
• Interest = $1,200 × 0.1899 × 1.75 = $398.79
• Total Interest Over 3 Years: $0 + $398.79 = $398.79

Conclusion: The American Express Blue Cash Everyday® Card


would save me $168.09 over 3 years! It is also a better choice than
Citi Simplicity Bank.
What I Learned
Lessons from My Purchase

• Always compare credit card options.


• Simple interest adds up over time!
• Paying off the principal faster can save money on interest.
Thank You!
I hope you enjoyed my journey and learned something new about
simple interest. Remember to shop smart and plan your
purchases wisely!

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