The sequence will be
[tex]850, 850 \times (1.018)^1, 850 \times (1.018)^2, 850 \times (1.018)^3, 850 \times (1.018)^4, ...[/tex]
That's
[tex] 850, 865.30, 880.875, 896.731, 912.872, ...[/tex]
Answer:
We will do [tex]850(1.018)^{x}[/tex] to know how much Nelson will go into debt with each passing month.
Step-by-step explanation:
Many credit card companies charge a compound interest rate of 1.8% per month on a credit card balance.
Means each month the rate increases exponentially.
Given is - Nelson owes $850 on a credit card and makes no purchases or payments, he will get into debt in the following way:
We will do [tex]850(1.018)^{x}[/tex]
Here x represents the time.
$850 was for the first month.
[tex]850(1.018)^{2}[/tex] = $880.87 is for the 2nd month.
[tex]850(1.018)^{3}[/tex] = $896.73 is for the 3rd month.
[tex]850(1.018)^{4}[/tex] = $912.87 is for the fourth month.
[tex]850(1.018)^{5}[/tex] = $929.30 for fifth month and so on.
