many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance. Miriam owes $750 on a cre
dit card. If she makes no purchases or payments she will go more and more into debt which of the following sequences describes her increasing monthly balance?
2 answers:
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<h2>Answer</h2>
f(x) = 190(1.15)x
<h2>Explanation</h2>To solve this, we are going to use the standard exponential function:
Where
is the final price after
years
is the initial price
is the rate in decimal form
is the time in years
We know from our problem that the initial price is $190, so . Now to convert the rate, 15%, to decimal form, we are going to divide it by 100%, so
. Let's replace the values: