Suppose you get a new Visa credit card with annual rate (APR) of 15.99%-22.99% Variable.

1. Now, suppose that you buy that lavish home entertainment system that you always wanted for $5,000, and you charge this amount on your new credit card. Now, assume you pay for this purchase by making $100 payments per month to the credit card company. Develop an amortization table assuming $100 payments each month for the first year (12 monthly payments). To get credit for this question #3, part a., you must show all of your work. How much of the $100 is interest and how much is being used to pay down your debt during the first 12 months? (State the amount of interest and state the amount of debt principal repayment each month; then sum those amounts to show the total amount of interest and debt repayment during the first year.) Note that you do not need to do these calculations by handthere are many websites that will calculate amortization tables, and Excel has an add-in feature to calculate this.
2. At a rate of $100 per month, how many months will it take to repay the entire $5,000?