Card Name (APR %) Existing Balance Credit Limit Bank of Gable (6.1%) $445.81 $3,000.00
Taylor Express (9.8%) $1,007.24 $2,500.00
ALTERNATE 1.9 Portfolio

You have $450.00 each month to pay off these two credit cards. You decide to pay only the interest on the lower-interest card and the remaining amount to the higher interest card. Complete the following two tables to help you answer questions 1–3.

Higher-Interest Card (Payoff Option)
Month 1 2 3 4 5
Principal
Interest accrued
Payment (on due date)
End-of-month balance

Lower-Interest Card
Month 1 2 3 4 5
Principal
Interest accrued
Payment (on due date)
End-of-month balance

1) How long does it take to pay off the higher-interest card?
2) What is the amount of the last payment on the higher-interest card? Why?