Question

Growing linearly, the balance owed on your credit card triples from $600 to $1800 in 12 months. If the balance were growing according to the exponential function f(x)=600(1+0.096)x where x represents the number of months, what would the balance be after 12 months? Round your answer to the nearest cent.

Answer 1

From the statement, we know that the balance of a company is given by:

`f(x)=600\cdot(1+0.096)^x.`

Where x represents the number of months.

We want to know the value of the balance after 12 months. So we replace x = 12 in the function, and we get:

`f(12)=600\cdot(1+0.096)^(12)\cong1802.51.`

Answer

After 12 months, the balance will be $1802.51 to the nearest cent.