2. In reality credit card companies don't charge interest every year, they charge interest every month. to determine the monthly interest rate, divide the APR by 12. Given both friend A and friend B charge $300 initially calculate how much each person would owe over time if neither made any payments to the credit card company. Friend A has an annual-rate of 18%. So customer A has a monthly rate of % Friend B has an annual rate of 36%. So customer B has a monthly rate of % Balance After Friend Annual Rate 0 years 1 year 2 years 3 years 6 years A 18% B 36% Do you think it matters how often credit card companies charge interest? Explain. Yes it matters because the more often they calculate the interest the higher the amount goes. O No, you pay the same amount of interest regardless of how often they calculate it. 3. If neither friend made any payments for an entire decade (10 years), how much would the $300 iPod end up costing in total? Friend A total cost (balance after 10 years): $ Friend B total cost (balance after 10 years): $