Assignment: CreditCard Payments Investigation Part IYouand Khianna were such a help in balancing Mrs. Katz’s checkbook that she hascalled again. A few months ago, she received a new credit card and now she is abit confused about how the interest and minimum payments are calculated. Mrs.Katz wants you to help figure out her monthly payments.Reviewthe example below and then help Khianna compute the details of Mrs. Katz’scredit card statement. In the exampleshown, the credit card had an initial balance of $1000 with an annualpercentage rate of 18% and a minimum payment of 3% required. The first fourmonths of payments would be:MonthUnpaid BalanceFinance Charge(Unpaid Balance x APR expressed as adecimal /12)Minimum Payment(Unpaid Balance + Finance Charge) x 3/100New Balance(Unpaid Balance + Finance Charge – Payment)1$1000_____1000 – 30 = $9702$970[img width=’187′ height=’35’ src=’file:///C:/Users/Boss/AppData/Local/Temp/OICE_F1B910F9-295D-47F8-A78D-EF788AC91C87.0/msohtmlclip1/01/clip_image006.gif’ v_shapes=’ i1027’>970 + 14.55 – 29.54= $955.013$955.01[img width=’204′ height=’35’ src=’file:///C:/Users/Boss/AppData/Local/Temp/OICE_F1B910F9-295D-47F8-A78D-EF788AC91C87.0/msohtmlclip1/01/clip_image010.gif’ v_shapes=’ i1029’>955.01 + 14.32 –29. 08 = $940.264$940.26[img width=’205′ height=’35’ src=’file:///C:/Users/Boss/AppData/Local/Temp/OICE_F1B910F9-295D-47F8-A78D-EF788AC91C87.0/msohtmlclip1/01/clip_image014.gif’ v_shapes=’ i1031’>940.25 + 14.10 – 28.63= $925.73Mrs.Katz had an initial balance of $1000, an annual percentage rate (APR) of 20%,and required minimum payments of 2%. Help Mrs. Katz calculate her unpaid balance, finance charge, and minimumpayments for the next six months.MonthUnpaid Balance(Balance – Payment)Finance Charge(Unpaid Balance x APR/12 expressed as adecimal)Minimum Payment(Unpaid Balance + Finance Charge) x 2/100New Balance(Unpaid Balance + Finance Charge – Payment)1$1000_____23456Part IIDid you know? By paying only theminimum amount due on a credit card, it takes years to pay off initial expensesand people end up paying almost double the cost of the items purchased. Take a moment to think about Mrs. Katz’soptions. Use what you have learned toanswer the following questions. Mrs. Katz could have saved money for hernew computer rather than buying it on a credit card. What would have beenthe difference in the amount of time to pay for the computer and theamount of money ultimately spent? 2. What is the difference between paying for something with a debit card vs.a credit card?