Answer:
C) 5000(0.987783)^t
Step-by-step explanation:
The monthly interest rate is the APR divided by 12, so is 22%/12 ≈ 0.018333.
Each month, the previous balance (B) has interest charges added to it, so the new balance is ...
balance with interest charges = B + (22%)/12×B = 1.018333×B
The minimum payment is 3% of this amount, so the new balance for the next month is ...
balance after payment = (1.018333B)(1 - 0.03) = 0.987783B
Since the balance is multiplied by 0.987783 each month, after t payments, the balance starting with 5000 will be ...
5000×0.987783^t . . . . . . . . . matches choice C
