Question

Jeremy would like to buy a dirt bike for $2000 but does not have the cash to pay for it. He ... He is offered a credit card that stipulates as long as he pays 75% of the balance off each month, they will only add $20 interest. He decides to do this, pay 75% of the balance each month until he pays off the card. The function is y=2000(.25)^x-1+20. What will be the balance of the card in 24 months?

Answer 1

The balance of card is 20.

Explanation:

The given function is

`y=2000(0.25)^(x-1)+20`

Where, the value of y represents the balance of card in x months.

We have to find the balance of the card in 24 months.

Put x=24 in the given function.

`y=2000(0.25)^(24-1)+20`

`y=2000(0.25)^(23)+20`

`y=20`

Therefore the balance of card is 20.