1. Upon graduation, Steven purchases a new home theater system for his apartment. To finance the system, he
"borrows" $5,000 from a new credit card at 21 percent per year compounded monthly. He fully intends to pay off the
"loan" in 1 year while making monthly payments. Develop an Excel \textregistered{} table to illustrate the payment amounts and
schedule for the loan, assuming payback follows
a. Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the
loan period.
b. Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period.
c. Plan 3: Make equal end-of-period payments.
d. Plan 4: Make a single payment of principal and interest at the end of the loan period.
e. A different plan: Pay $X in principal at the end of months 1, 2, and 3; pay $2X at the end of months 4, 5, and 6;
then $3X at 7, 8, 9; and finally $4X at 10,11,12. In addition, pay the accumulated interest at the end of each
interest period.
