3. 3.50 Many college students have Visa credit cards that carry an interest rate of “Simple 24% per year” (i.e., 2% per month). When the balance on such a card is $5000, the minimum payment is $110.25.

1. Page 106What is the amount of interest in the first payment?

2. How long will it take in months to pay off the $5000 balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card?