Your APR is 7.75%.

Now, suppose (but dont actually do this) 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 this back by making $100 payments per month.

a. Develop an amortization table assuming $100 payments for the first 12 months payment. To get credit, 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? Note that you do not need to do these calculations by had there are many websites that will calculate amortization tables and excel has an add in feature to calculate this.

b. At a rate of $100 per month, how many months will it take to repay the entire $5,000?