Use the following information to solve for FOUR questions BELOW:

You used your credit card and owe a balance of $3,500 at 1.5% monthly interest. You will be paying minimum monthly payments of $55.

#1. What is the APR and EAR of this credit card interest rate?

#2. How many years will it take to pay off the balance?

#3. Instead of paying only the minimum payment of $55, you decide to payoff faster. If you decide to pay off in 10 years, what should be your monthly payment be?

#4. By paying in 10 years, how much of interest are you saving compared to when you are paying only the minimum amount of $55?

		#1. APR = 12% ; EAR = 18.26%
		#1. APR = 18% ; EAR = 19.56%
		#1. APR = 15% ; EAR = 16.56%
		#2. APPROX. 17 YEARS TO PAY OFF BALANCE
		#2. APPROX. 14 YEARS TO PAY OFF BALANCE
		#2. APPROX. 22 YEARS TO PAY OFF BALANCE
		#3. NEW MONTHLY PMT = $75
		#3. NEW MONTHLY PMT = $87
		#3. NEW MONTHLY PMT = $63
		#4. INTEREST SAVINGS OF APPROX. $2980
		#4. INTEREST SAVINGS OF APPROX. $3850
		#4. INTEREST SAVINGS OF APPROX. $4520