Steven has a credit card balance of $5100 but is continuing to grow even though he makes the minimum payments. Mastercard is charging a nominal interest of 21% per year/annual which = 1.75% per month. He would like to start reducing the credit card as he is over his credit limit of $5,000 because he would like to purchase more items. Steven has started using the credit card for living expenses when he runs out of cash at the end of the month. He doesn't understand why he doesnt have enough (It may be because his expenses are close to his income).

a) What is the effective annual interest rate on the credit card?

b) How would you recommend Steven address the balance on the card?