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You are starting a small business and you have decided to use your credit card as a form of payment for purchasing the equipment needed for your start up. The total cost of equipment that you have purchased is 120,000. The …company has minimum required payment of 6% per month but if only pay the minimum required payment, a charge of 2% will be charged on your remaining balance for the next bill.

Required:
A. If you would not use your credit card for the next 5 months and u are only paying the minimum payment required, compute for ur remaining balance after 5 months.
B. Compute for the (a) total payment u made during 5 months and (b) the total deducted amount from the principal money u used to purchase ur equipment