Question

Many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance. Miriam owes $650 on a credit card. If she makes no purchases or payments, she will go more and more into debt. Which of the following sequences describes her increasing monthly balance?

Answer 1

650, 650(1.018), 650 (1.018)^2, 650(1.018)^3, ...

650, 661.7, 673.61, 685.74,698.08, ...

Answer: OPTION B. 650.00, 661.70, 673.61, 685.74, 698.08, ...