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Many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance. Nelson owes $950

User NGix
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1 Answer

5 votes

Answer:

950, 1121.00, 1322.78, 1,560.88, 1,841.84

Explanation:

Calculation to determine the sequences that describes his increasing monthly balance

Based on the information given in order for us to determine the sequence we have to multiply the amount owes by the interest rate and then add back the answer you got to the previous amount you multiplied the interest rate to.

First sequence will be the amount he owes on a credit which is $950

Second sequence

950 * .018 = 171.00

950 + 171.00 = 1121.00

Third sequence

1121.00 * .018 = 201.78

1121.00 + 201.78 = 1322.78

Fourth sequence

1322.78*0.18=238.10

1322.78+238.10=1,560.88

Last sequence

1,560.88*0.18=280.96

1,560.88+280.96=1,841.84

Therefore the sequences that describes his increasing monthly balance are:

950, 1121.00, 1322.78, 1,560.88, 1,841.84

User Sebers
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