(In Excel) 1.Credit card debt: Your friend has a credit card with a balance of $5,000. The credit card has an APR of 26%, compounded monthly. Your friend wants to get out of debt and has cut up the card (i.e., no new purchases will be made with the card). The minimum monthly payment is $125.

What is the EAR of the credit card?

Use the Excel function NPER to determine how long (in months and years) will it take to pay off the balance on the card if your friend pays only the minimum payment due at the end of each month? Create an amortization schedule to prove the Excel function worked properly (i.e., that the balance is paid off at the end of that number of months).

If your friend just pays the minimum payment, how much total interest will she pay prior to paying off the balance this can be determined by adding up all of the interest in the amortization schedule.

If your friend wants to pay off the card balance in two years (24 months), what is the monthly payment would your friend needs to make at the end of each month? Create a new amortization schedule to show that the loan is paid off at the end of 24 months.

How much total interest would your friend would pay prior to paying off the balance if she makes the monthly payments in 2d?