A recent graduate of the university has gotten into a little more credit card debt than they had anticipated. They curr

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A recent graduate of the university has gotten into a littlemore credit card debt than they had anticipated. Theycurrently owes $22,000; the credit card company charges 1.5% permonth on this debt.If they wish to pay off this credit card bill in 5 years ofequal monthly installments, promises to make the first payment nextmonth and not use the credit card again, what monthly payments mustthey make? You may assume that there are no additional feesor charges related to the card, and that the credit card interestrate is not expected to change.The graduate’s parents hear of this plight. They offer toextend a loan to pay off the debt, with the interest rate chargedequal to .6667% per month. The student wishes to know theincremental value of this new borrowing opportunity (relative tothe credit card debt) today (so that he can go shopping.) That is, how much they can spend today and still have the samemonthly payments as in part a). What can they spend ontoday’s shopping trip?