2) The following question will test your skills of time value of money techniques applied to credit cards. Suppose you owe $10,000 on a credit card. The credit card has an APRof 18%. In the following questions we will assume you make NO additional charges on your credit card. a. If you wish to pay of the balance in 5 years, how much should you pay monthly? 1 Annual percentage rate (APR) - A Dictionary of Accounting (5 ed.), edited by Jonathan Law The annual equivalent rate of return on a loan or investment in which the rate of interest and charges are specified in terms of an annual rate of interest. Most investment institutions are now required by law to specify the APR when the interest intervals are more frequent than annual. [As an example,] charge cards that advertise monthly rates of interest (say, 2%) must state the equivalent APR. Given by [(1 + 2%)^2-1) = 26.8%. b. If you make the required payments calculated in a., at the end of the first year (just after you have made the 12th monthly payment), how much do you owe on the credit card? C. If you make the required payments calculated in a., how much interest do you pay over the first year? d. If you make the required payments calculated in a., how much interest do you pay over the five-years