Question

A person owns $1000 on a credit card that charges an interest rate of 2% per month​

Answer 1

4 ⇒ 1061.208

5 ⇒ 1082.43216

6 ⇒ 1104.080803

7 ⇒ 1126.162419

8 ⇒ 1148.685668

Explanation:

* Lets explain how to solve the problem

- A person owns $1000 on a credit card

- The card charges an interest rate of 2% per month

- The rule for the future money is
`A=P(1 + r)^(n-1)`, where

# A is the future amount

# P is the initial amount in the first month

# r is the interest rate in decimal

# n the number of months

∵ P = 1,000

∵ r = 2/100 = 0.02

∵ The initial amount in the 1st month is 1000 ⇒ n = 1

∵ A = 1,020 in the 2nd month ⇒ n = 2

∵ A = 1,040.40 in the 3rd month ⇒ n = 3

∵ n = 4

∴
`A=1000(1+0.02)^(4-1)=1061.208`

∴ 4 ⇒ 1061.208

∵ n = 5

∴
`A=1000(1+0.02)^(5-1)=1082.43216`

∴ 5 ⇒ 1082.43216

∵ n = 6

∴
`A=1000(1+0.02)^(6-1)=1104.080803`

∴ 6 ⇒ 1104.080803

∵ n = 7

∴
`A=1000(1+0.02)^(7-1)=1126.162419`

∴ 7 ⇒ 1126.162419

∵ n = 8

∴
`A=1000(1+0.02)^(8-1)=1148.685668`

∴ 8 ⇒ 1148.685668