2. Francisco has credit card debt in the amount of $29,347. Assume that Fran-

ciscos credit card has APR of 18.75% .

(a) If he makes no additional purchases on his card how long will it take him

to pay off his debt if he only pays the minimum monthly payment of $550?

(b) How much does he wind up paying the credit card company by only paying

the minimum payment?

(c) Assume that instead of making the minimum payment, Francisco decides

he wants to payoff his credit card debt in two and a half years. What will

his monthly payment be to accomplish this?

Please use the formula given, and please write it out clearly

- Tools Thu 5, Window Help 41% % 42%D Loans Class Notes.pdf (page 1 of 5) Q Search Loans Loan Formula d(1 - (1 + D)-Nk) P = T k Po is the balance in the account at the beginning (the principal, or amount of the loan) d is your loan payment (your monthly payment, annual payment, etc) r is the annual interest rate (in decimal form. Example: 5% = 0.05) k is the number of compounding periods in one year. N is the length of the loan, in years 9 ? ? 0 g otv A MacBook Air SO 8 bu 9 546 2