Question

Jacki plans to pay for the down payment of a new car with her credit card. The annual interest rate for her credit card is 17%. The following expression represents the balance of the credit card, in dollars, after t years.

2,250(1.17)^t

Write an exponential expression in the form (b)c that reveals the monthly interest rate of Jacki's credit card. Round any decimals to the nearest thousandth.

Answer 1

2,250(1.014)¹²t

Explanation:

Given that the annual interest rate of Jacki's credit card is 17%,

it means 17% = 17/100 = 0.17

The exponential expression that reveals the monthly interest rate of Jacki's credit card is:

2,250(1 + 0.17/12)¹²t

2,250(1+0.014)¹²t

=2,250(1.014)¹²t

Answer 2

Given that the annual interest rate of Jacki's credit card is 17%,
it means 17% = 17/100 = 0.17
The exponential expression that reveals the monthly interest rate of Jacki's credit card is:
2,250(1 + 0.17/12)¹²t
2,250(1+0.014)¹²t
=2,250(1.014)¹²t