The problem: Monica's current debt consists of three types of loans: a bank card, an auto loan, and a department store card. She owes a total of $25,000 and her monthly payments sum to $549.61. The amount she owes, the monthly payment, and the interest rates appear in the table below: Loan Type Bank Card Auto Loan Department Store Card TOTALS Loan Amount Annual Percentage rate, APR (Current Debt) Monthly Payment 18% $12,000 $243.85 5.5% $11,500 $257.88 15% R $ 1,500 $ 47.88 $25,000 $549.61 Monica is having a hard time meeting the monthly payments and is considering consolidating the three loans to reduce her total monthly payments. She could borrow $25,000 to pay off her existing three loans leaving her with a single loan payment to the loan company. She has received a mail offer advertising a $25,000 home equity line of credit based on 7.9% APR amortized over a 10 year term with monthly payments of $164.58. (This reduces Monica's monthly payments by $385.03.) 4. How much does Monica pay to the loan company during the 10 years with this new monthly payment? 5. If Monica rejects this offer and decides to continue making her current monthly payments, how many months will it take to pay off each of the original loans? Auto Loan TVM Solver: N= Department Store Card TVM Solver: N= I%= PV = 1% = Bank Card TVM Solver: N- I%= PV = PMT - FV P/Y= CY= Pmt End PMT - PV = PMT - FV = P/Y C/Y - Pmt FV- C/Y Pmt End 6. How much in total will she pay for each loan? What is the grand total amount paid on all three loans? Complete the table below. APR Amount Paid Number of Monthly months paying Loan Amount Payment off the loan $12,000 $243.85 $11,500 $257.88 Loan Type Bank Card Auto Loan Department Store Card 18% 5.5% 15% $ 1,500 $ 47.88 TOTALS $25,000 $549.61 Grand total paid: 7. What plan would you advise Monica to follow so she can pay off her loans? Support your response