Question

The balance owed on your credit card doubles from $600 to $1200 in 6 months. If the balance is growing linearly, then it would take 64 months to reach $7000. If, on the other hand, the balance is growing exponentially, f(x)=600(1+0.122)^x where x represents the number of months, what would the balance be after 64 months? Round your answer to the nearest cent

Answer 1

The balance after 64 months is found by substituting 64 into the exponential growth formula, calculating the result, and rounding to the nearest cent.

Step-by-step explanation:

The question asks us to calculate the balance on a credit card that is growing exponentially, according to the given formula f(x) = 600(1+0.122)^x, where x represents the number of months. To find out what the balance would be after 64 months, we substitute x with 64 into the formula, which results in f(64) = 600(1+0.122)^64. When calculated, this gives us the balance after 64 months, which should be rounded to the nearest cent as per the question's instructions.