"First, think twice before you add that purchase to your credit card. If you charged your $2500 spring break trip to your credit card or if you and your spouse just splurged for a $2500 flat-screen television and charged it to your credit card, at 18% interest it would take you 34 years and six months to pay it off if you paid a 2% minimum balance and never charged another penny to your credit card."

Set-up an amortization table using the following information to answer the questions.

Total Number of Months: 414 (Make sure to stop your amortization table at the end of month 414.)

Balance: 2500

Interest rate: 18%

Monthly Payment: 2% of the balance but not less than $10.

1. What is the payment amount during the last month (month 414)?

2. Use the PMT function to determine the monthly amount you would need to pay to have a balance of 0 at the end of 24 months. What is the payment amount?