Question 5 Part 1 Dennis loses his full time job during coronavirus pandemic and can't afford to pay his credit card payment. Below is his credit card statement information. Statement Credit limit Interest, fees and Overdue minimum Balance charges payment amount $35,000 $20,000 $600 $0 Below is the method of calculating minimum payment due extracted from the policy of the credit card company, The minimum payment amount is $300 or the sum of items (i) and (ii) below (whichever is higher): 1) The total of all the current month's interest, annual fee, late charge, past due amount, other fees and charges if any; and (ii) 1.5% of the statement balance (excluding item a, where applicable) Required: (a) List any TWO advantages and ONE disadvantage of using credit card. Determine whether credit card is an open-end or a closed end credit. Briefly explain. (6 marks) (6) Based on the above information, calculate the minimum payment due on Dennis's credit card. (2 marks) () What are the financial consequences if Dennis fails to pay the minimum payment due on the payment due date? (4 marks) Part II June opened a current account that charges an annual fee of $50 for 100 free checks a year. After exceeding 100 checks, there is a processing fee of $0.5 per additional check. In addition, June invested $60,000 in a saving plan that earned $29,160 over the past 2 years. Required: (a) Assuming that the saving plan is compounded daily, calculate its annual percentage yield and stated annual percentage rate. Show all your workings, (4 marks) (b) What is a current account? Calculate the annual cost if June writes an average of 25 checks a month. Show all your workings. (4 marks)