After landing your dream job you are very excited at the prospect of a $55,000 per year job. You promptly max out your credit card on shopping and carbonated malt beverages. Your American MasterVisa has the low interest rate of 19% compounded monthly.

a) If you have a credit card debt of $17,500 and you make the minimum repayment of $300/month, how long will it take to repay the credit card company? What is the moral of this story?

b) What is the nominal interest rate charged by the credit company?

c) What is the effective interest rate charged by the credit company?