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Part III: Credit Cards Question 4. With two weeks loft in the quarter, a student's laptop breaks beyond repair. The student need a laptop to

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Part III: Credit Cards Question 4. With two weeks loft in the quarter, a student's laptop breaks beyond repair. The student need a laptop to work on their film class final and there's no way they can get an extension. They decide to immediately buy a MacBook Pro Since they don't have the cash to pay for it, they charge it to their "For Emergency Uso Only credit card. The credit card has an interest rate of 17 99%. Assume the only charge made on the credit card is $2500 for the new MacBook Pro a. [2 points) MINIMUM PAYMENT The student decides to pay the minimum payment option. That is, they pay the maximum of other 3% of the balance or $30 each month, Create an amortization table for the loan. Pasto months 0.5 into your Word document Hint: Whon setting up the amortization table in Excel use the MAX function to determine the payment How long wil it take the student to pay off their balance? How much will the student pay in interest for the minimum payment option? b. 12 points) FLAT PAYMENT Supporo instead of paying the minimum option the student gets a job as a Lab Assistant at Northeastern Illinois University which allows them to pay $90 per month (Hot payment) Create an amortization table for the loan. Paste months 06 into your Word document Hot When setting up the amortization table in Excel the payment should always be 500 How long does it take the student to pay off their balance? How much will the student pay in interest for the flat payment option? c. 12 points) PAYING OFF THE LOAN IN 2 YEARS What would the student's monthly payment be if they wanted to pay of the credit card in exactly 2 years? Create an amortization table for this loan. Paste months 0-5 into your Word document. Hint: Whenever we know the exact time we want a loan to last, we can use the PMT function in Excel when setting up the payment in the amortization table in Excel. There is a place in the PMT function to input the number of years How much will the student pay in interest for this option? d. 2 points) Which of the three payment options above is better and why? Submit your Word document and Excel file containing your work in the Module 6 Assignment Submission Folder

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