Three friends each spent $5,000 on their brand new credit cards with a 25% APR. They've decided that they will not make any other purchases on their cards until they pay off the debt and all make varying amounts of monthly payments: Cecilia can set aside $200 per month to pay back her debt Sharon can only make the credit card minimum payment, $100 per month Alexander can pay $400 per month for his credit card After 5 months, how much will each person have had to pay in interest so far and how much will they still have to pay back? Use the formulas below to calculate their interest and balance for each month. APR = Annual Percentage Rate I = Interest (dollars) B = Starting Balance N = New Balance P = Monthly Payment X means times (multiplication) 1 = (APR/12) XB N = (B + 1) -P * Required After 5 months, Cecilia will have paid 5 times $200, or $1.000. How much will Cecilia have paid in interest, and how much will she still have to pay back? Your answer After 5 months, Sharon will have paid 5 times $100, or $500. How much will Sharon have paid in interest, and how much will she still have to pay back? Your answer After 5 months, Alexander will have paid 5 times $500, or $2.500. How much will Alexander have paid in interest, and how much will he still have to pay back? Your answer Why is it more costly to pay only the minimum payment? Your answer What advice would you give to these three friends? Your