Joe College decides he wants to buy a top of the line entertainment system. The only problem is he can’t afford the $5,000 it will cost him. He decides to put it on his credit card. His card currently charges him 0.75% using the daily average balance on purchases and he can afford to spend $300 per billing cycle making payments.

Part 1: Figure out how long it will take Joe to pay off the credit card if his Original purchase is on the tenth day of the first billing cycle and his 300 payments are made on the 12th of each subsequent 30 day billing cycle. Determine how much his endeavor really costs him and how much interest he pays.