Question

You have just graduated from college and purchased a car for $7000. Your credit limit is $12,000.  Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 8%. What is the growth factor of your credit card balance?

Answer 1

1.08 is the answer. Hope I helped!

Answer 2

Answer: 1.08

Explanation:

We know that the growth factor of credit card is given by :-

`k=(1+r),\text{ where r is the monthly interest rate.}`

Given: The monthly interest rate = 8%

In decimal , the monthly interest rate is given by :-

`r=(8)/(100)=0.08`

Now, the growth factor of your credit card balance is given by :-

`k=(1+0.08)=1.08`

Hence, the growth factor of your credit card balance =1.08