Question 1: (15 marks)

a)You use your credit card to purchase a new TV, which cost $5,000.The rate charged on your credit card is 18% APR compounded daily. You are making the minimum required payments each month of $100.How long will it take for you to pay off the balance in full? (5 marks)

b)If you can save $100 a month for the TV in an account that earns 4% compounded monthly, how long will it take for you to save up the $5,000 to buy the TV with cash? (3 marks)

c)Clearly buying the TV now on credit versus waiting to save the amount will cost you more.Besides the additional cost provide one benefit you get from saving for the purchase over using credit. (7 marks)

Please let me know the answer and details. thank you!