Question

many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance. Miriam owes $750 on a credit 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?

Answer 1

The answer is E.

First you need to find the rate. You must divide 1.8 by 100

1.8/100 = .018

Then add 1.

.018 + 1 = 1.018

Then times the starting amount with 1.018. The starting amount 750

750(1.018) = 763.5.
As you can see, in option E that is the 2nd number.

Now we must find the next number.

You will do 750(1.018)^x

x represents the time.

763.5 was the first month.

750(1.018)^2 is the 2nd month.

750(1.018)^2 = 777.244 which is the 3rd number in option E

Answer 2

The Answer Is E you have to divide 1.8 by 750$ Then you can Find The Balance