Question

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

Answer 1

The correct answer is D. 650.oo, 661.70, 673.61, 685.74, 698.08

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

The correct answer is D. 650.oo, 661.70, 673.61, 685.74, 698.08