SECTION II: CREDIT CARDS 3. You bought a brand new TV and surround sound system, and charged a total of $3700 on your credit card. Your credit card has an annual interest rate of 16.99%. Your bank's terms for minimum payment is either 2% of your balance or $25, whichever is the larger amount. (Assume that you had no prior balance on the card and that you will not make any additional charges on the card) a. Assume you decide to make the minimum payment. How long will it take for you to pay the loan off? b. Under the minimum payment option, what is the total interest you pay to the bank? c. Assume you decide to make a flat payment of $100 each month to pay this debt. How long will it take for you to pay the loan off? d. Under the $100 monthly flat payment option, what is the total interest you pay to the bank? e. Assume you decide to pay off this debt in 3 years. What is your monthly payment amount? f. Under the 3 years fixed duration payment option, what is the total interest you pay to the bank? 9. Of the three payment options, if you can afford to do any one of these, which one is the best financial decision? SECTION II: CREDIT CARDS 3. You bought a brand new TV and surround sound system, and charged a total of $3700 on your credit card. Your credit card has an annual interest rate of 16.99%. Your bank's terms for minimum payment is either 2% of your balance or $25, whichever is the larger amount. (Assume that you had no prior balance on the card and that you will not make any additional charges on the card) a. Assume you decide to make the minimum payment. How long will it take for you to pay the loan off? b. Under the minimum payment option, what is the total interest you pay to the bank? c. Assume you decide to make a flat payment of $100 each month to pay this debt. How long will it take for you to pay the loan off? d. Under the $100 monthly flat payment option, what is the total interest you pay to the bank? e. Assume you decide to pay off this debt in 3 years. What is your monthly payment amount? f. Under the 3 years fixed duration payment option, what is the total interest you pay to the bank? 9. Of the three payment options, if you can afford to do any one of these, which one is the best financial decision