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mihalych1998 [28]

3 years ago

10

Many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance. Miriam owes $650 on a cre

dit card. if she makes no purchases or payments, she will go more and more in debt.
Which of the following sequences describes her increasing monthly balance?

1 answer:

Sauron [17]3 years ago

6 0

Answer:

<u>The correct answer is D. 650.oo, 661.70, 673.61, 685.74, 698.08</u>

Step-by-step explanation:

1. Let's review the information given to us to answer the question correctly:

Compound interest rate charged by Miriam's credit card company = 1.8% monthly

2. If she makes no purchases or payments, she will go more and more in debt. Which of the following sequences describes her increasing monthly balance?

Miriam's current credit card balance = US$ 650

Miriam's credit card balance in one month = 650 * 1.018

Miriam's credit card balance in one month = 661.70

Miriam's credit card balance in two months = 661.70 * 1.018

Miriam's credit card balance in two months = 673.61

Miriam's credit card balance in three months = 673.61 * 1.018

Miriam's credit card balance in three months = 685.74

Miriam's credit card balance in four months = 685.74 * 1.018

Miriam's credit card balance in four months = 698.08

<u>The correct answer is D. 650.oo, 661.70, 673.61, 685.74, 698.08</u>

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