D1.

Sam is applying for a $5,000 credit card. It will be her first credit card and she is applying for it to start building credit for the future. Assume the interest rate for the card will be 19.99%. With Sam, please discuss the following: (8 marks)

a) What it means that a credit card is a "revolving credit" productb) Explain two benefits and two costs of a credit cardc) Explain the grace period for credit cards.d) Calculate the amount of interest that will be added to her credit card after the payment date if the balance owing on her statement showed $4,000 for the month of June and sheonly made a $1,000 payment.