The purpose of this exercise is to apply what you have learned about budgeting, debt, and assets to practice building a budget with the specific goal of reducing outstanding debt. For this assignment, use the information and assumptions provided to build a budget and address the questions below. Background: You are a recent college graduate starting a new job. During your schooling, you accumulate student loan debt that you want to pay off as much as possible in 5 years. After graduating, you also bought a car that will need to be paid off in 5 years. Use the below details and assumptions to show how you will pay of this debt over the next 5 years. Assumptions to Use: Student Loans: Student Loan Debt Amount: $50,000 Student Loan Debt Interest Rate: 6% APY, compounded monthly Student Loan Term: 10 years remaining on your loans Car Loans: Car Loan Debt Amount: $15,000 Car Loan Debt Interest Rate: 2% APY, compounded monthly Car Loan Term: 5 years remaining on your loans Questions to Answer: Given the assumptions on your student loans (assuming no additional payments are made), what is your monthly payment amount? Given the assumptions on your car loan (assuming no additional payments are made), what is your monthly payment amount? In your 3rd year out of school and on the job, you receive an extra bonus of $1,000. After reviewing your budget, you think its best to apply that to either your car or student loan. So you want to review your current debt to help make the best decision What is the current remaining balance of your car loan after 24 payments have been made? For the remaining 3 years of your car payment (36 payments), how much of that will be applied to interest? What is the current remaining balance of your student loans after 24 payments have been made? For the remaining 8 years of your student loans (96 payments), how much of that will be applied to interest? If you apply that $1000 to your student loan balance payment (in addition to your monthly payments), how much would you save in interest over the remaining life of the loan. Assume you make this payment in addition to your 25th payment