$i=\frac{\text{A}\text{P}\text{R}}{12}$~~

The minimum payment required by your credit card company is $$25$ per month. Assuming that you do not

make any new charges to your account, you will answer the following questions to help you determine the

best plan for paying off this credit card debt.

a$)$ To begin with, let's check out the plan of only paying the minimum amount due each month. To get a feel

for how this will affect the balance, you'll compute the interest and the balance on the first few months

assuming a the minimum monthly payment of $$25.$

Let $B_k$ represent the balance for the $k^{th}$ month and $I_k$ represent the interest charged for the $k^{th}$ month.

For example, $I_1$ is the interest charged on the original balance and $B_1$ is the original balance plus $I_1$ minus

the $$25$ payment $($said differently, $B_1$ is the balance after one month$).$ Start by finding those values. For this

exercise, round all values to the nearest cent $(2$ decimal places$).($Hint: $I_k=i*B_{k-1})$

$I_1=$$$|,|B_1=$$$|$

Now use $B_1$ to find the interest charged for the $2^{nd}$ month which is $I_2,$ and the balance after $2$ months,

which is $B_2($don$\text{'}$t forget to subtract the $$25$ payment$).$

$I_2=$$$,B_2=$$

Got it$?$ Ok$,$ you're ready to figure out how much interest you will be charged for the rest of the year and

what your final balance will be after $12$ months of just making the minimum payment. Finish filling in the

following "table".

$[I_3=$$$,B_3=$$$],[I_4=$$$,B_4=$$$],[I_5=$$$,B_5=$$$],[I_6=$vdots,$],[I_7=$vdots,$],[I_8=$vdots,$B_6=$$$],[I_9=$$$,B_7=$$$],[I_{10}=$$$,B_8=$$$],[I_{11}=$$$,B_9=$$$],[I_{12}=$$$,B_{10}=$$$],[B_{11}=$$$],[B_{12}=$$$]$