In March 2020, Robin is approved for his first credit card! It is a single use card offered by Sun Bank, his family's Bank. After careful evaluation of his finances, Robin decides to set a self- imposed limit of usage not exceeding Rs. 60,000 as against approved limit of Rs. 100,000. He also promises himself that he will pay his balance in full every month to avoid the 30 per cent APR (the periodic monthly rate of 2.50%). The card issuer requires a minimum 10% on any unpaid balance. And so, Robin is off like a rocket with is card and monthly purchases resulting from his shopping spree followed. He is too busy to realise that his new credit card expenses are seriously threatening his winter vacation plans in 2020. Help him regain control of his finances by completing the following credit card balance statement and by answering questions 1 through 3. Credit Card- Balance Outstanding and Interest Calculations Approved Limit: Rs. 100000 Forward Month Purchases New Interest Adjusted Payment balance Year balance .025 balance (2.50%) 0 April 20 30000 0 30000 3000 May'20 18000 45000 1125 6125 40000 June.'20 24000 65600 July.20 12000 72000 1800 9800 64000 Augt.'20 36000 1500 101000 Sept.'20 1. Knowing Robin will pay an additional interest on each month's unpaid balance, calculate how long it will take him to pay off the issuing bank if he makes no additional purchases and continue to pay at least Rs. 6000 per month. Calculate how much interest Robin would pay by the time he clears his total unpaid balance. If spending pattern would have continued past Oct. 20 statement, what do you think might have happened? 2. 3