1. Bob's average debt is $10,000 at graduation that accrues interest at 7.2% annually. A) If he pays $150 a month, how much time until the balance is paid off? B) How much would he have paid in toward the principal within the first payment? C) How much will he owe if he defers his loan for 10 years?
2. Bob owes $7000 on his credit card with an APR of 18%. A) How much interest rate is he paying on the first month at the current interest rate? B) How long would it take for the amount owed to double? C) If Bob has 10 credit cards that he is paying off, what would you recommend as a plan of action to pay off his debts? Identify and describe 3 suggestions to help Bob out of his situation.