You deposited a check for $1,200 into your checking account that had a balance of $625 and it "bounced". You had written checks
for $450, $225, $215, and $187. Your bank will pay the largest check that you wrote first. Your account is overdrawn, and the remaining checks written to pay monthly bills did not clear. Your bank charged you a $35 overdraft fee and each of the remaining creditors receiving bounced checks charged you a $25 late payment fee. What did the $1,200 check that "bounced" on you cost you?
This is an exponential equation problem. We have a starting value and a rate of increase. If we plug in the numbers, we just have to evaluate the expression. We will use 8 for the number of years from 1992 to 2000.