1. How long will it take Kate to pay for the same purchase if the minimum payment is changed to 3% of the outstanding balance of $3,750 but the interest rate is raised to 23%? How much interest will she pay in total?

2. Calculate the average daily balance (ADB) and the finance charge on Drew's account that has 9.5% APR and a 30-day billing cycle. His January statemen.

$425.89 balance carried from December

$133.15 K-Mart charge on January 5

$76.95 Greek Cuisine restaurant charge on January 8

$150.00 payment paid on January 10

$25.25 Texaco gas charge on January 11

$33 15 Target charge on January 21

$80.00 health club charge on January 26

$17.85 Wal-Mart charge on January 28