Question

Emma doesn’t have $300 now, but she plans to get a job when she gets to college. She wants to find out how much it will cost her if she doesn’t pay off her credit card until after college. Find how much she’ll owe in four years.

Answer 1

She owes about close to 3,000 dollars!!

Answer 2

Answer:

$528 dollars.

Step-by-step explanation:

In the USA The average credit card interest rate is 19% per year.

Emma borrows a quantity P=300.

After each year that goes on Emma has owns extra the 18% of P. Hence, the first year she owns

$P+1\cdot P \cdot 0.19$

the second year, she owns

$P+2\cdot P \cdot 0.19$

and so on, after n years she own

$P+n\cdot P \cdot 0.19$

Since she wants to pay after the fourth year college, she will pay back

$P+4\cdot P \cdot 0.19 = 300 + 4 \cdot 300 \cdot 0.19 = 528$ dollars.