Math & Science Gumbo

Beginning Balance	Interest Rate	Interest Charge (beginning balance times 2 percent)	Principal (beginning balance times 10 percent)	Ending Balance (beginning balance plus interest)	Minimum Amount Due (principal plus interest)	New Balance (ending balance minus amount due)
$100	2% (monthly)	100 x .02 = $2	100 x .10 = $10	$102	$10 + $2 = $12	$102 - $12 = $90
$90	2% (monthly)	90 x .02 = $1.80	90 x .10 = $9	$91.80	$9 + $1.80 = $10.80	$91.80 - $10.80 = $81
$81	2% (monthly)

Credit: Money from a bank or other lending institution that is available for someone to borrow.

Debit: The payment subtracted from the balance of a loan.

Balance: The remainder of a loan after a payment has been made. The difference between the totals of the credit and debit sides of an account.

Principal: The original amount of a debt (loan) on which the interest is calculated.

Interest: A fixed charge for borrowing money; usually a percentage of the amount borrowed.