PEARSONALWAYS LEARNINGCard Name (APR %) Existing Balance Credit Limit$3,000.00$2,500.00$475.00Mark2 (6.5%)Bee4 (10.1%)$1,311.48Savings vs. Debt PortfolioYou have $400.00 each month to payoff these 2 credit cards.You decide to pay only the interest on the lowest interest cardand the remaining amount to the other card. Complete thefollowing two tables to help you answer questions 1-3.Higher-Interest Card (Payoff Option)12345678910MonthPrincipalInterest accruedPayment (on duedate)End-of-monthbalanceLower-Interest Cardl1234567891oMonthPrincipalInterest accruedPayment (on duedate)End-of-monthbalance1) How long does it take to pay off the higher interest card?2) What is the amount of the last payment? Why?3) At the end of the month that you pay off the higher-interestcard, after you have started to pay down your debt on thelower-interest card, what is the balance of the lower-interest card? Why?Complete the following two tables to help you answer questions4-5.4) Rework the problem so that you pay off the lower-interestcard first.s) How much money do you save by paying off the higher-interest card first?Lower-Interest Card (Payoff Option)12345678910MonthPrincipalInterest accruedPayment (on duedate)End-of-monthbalanceHigher-Interest CardMonthPrincipalInterest accruedPayment (on duedate)End-of-monthbalanceT12345678910Be sure to include in your response:· All parts of the table are complete and calculations correct· The answers to the additional questions

Note: This post has five questions. The first three questions have been answered below. Please…

Answered: Card Name (APR %) Existing Balance…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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