Assume you have a credit card with a 19.25% APR that is compounded monthly. In addition, assume that you have just made a $1000 purchase on this card. You will examine the different ways to pay off this purchase. 1. Different monthly payments a. First, suppose you make $30 payments per month on the card. Create a spreadsheet that gives the amortization table in this scenario and use it to find how long it will take to pay off the balance and how much interest you will pay. b. Larger payments per month mean you can pay off the debt faster. Determine how fast you can pay off the credit card with the monthly payments in the table below. (Recall that to make these analyses exact, you might need to use a different payment amount for the last month. Here, we just want to get an approximate idea of what will happen with different payment amounts, so we will assume that all of the payments are the samethis means that the approximate interest paid will be a little bit of an overestimate but should still give a reasonably close number.)

Months to Clear Debt (round to the next month) Approximate Interest Paid (use the time from the middle column of this table) Monthly Payment $30 $60 $90 $120 $210 Months to Clear Debt (round to the next month) Approximate Interest Paid (use the time from the middle column of this table) Monthly Payment $30 $60 $90 $120 $210