Henry has a credit card that has 16% APR which is compounded monthly. The required minimum payment is 2% of the outstand

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Henry has a credit card that has 16% APR which is compoundedmonthly. The required minimum payment is 2% of the outstandingbalance. Henry typically only pays the minimum payment. After hismost recent payment, he had $1025 left on the card.The credit card company applies the APR to what wasn't paid andsends a the next month's bill (which is called the outstandingbalance). This problem approximates what happens for credit cardbills.a) How much will Henry's next credit card bill show for theoutstanding balance? $ [Hint: Use the FV spreadsheet command:Divide the interest rate by 12 months (as usual), put a 1 in fornper (for 1 month), put a 0 in for PMT (he isn't paying anythingmore), put what remained on the card after his payment ($1025) forpv]b) How much is Henry's next minimum payment? $ [Hint:Multiply the result you have for part a by 2%.]c) Assuming that Henry only pays the minimum what is the amountthat remains unpaid? $ d) The process will then repeat. Find the new outstanding balanceusing FV formula as described in part a using the new amount thatis unpaid. $ e) When minimum payments on credit cards that have high interestrates are made, the outstanding balances from one credit card billto the next won't show a lot of progress because of the highinterest. Let's explore this for Henry. How much did Hery's debtdecrease by? $ [Hint: Part a - Part d]f) What amount of money from Henry's payment in part b went to thecredit card company as profit? $ (YIKES!) [Hint: Part b- Part e]