Question

many credit card companies charge a compound interest interest rate of 1.8% per month on a credit card balance. Miram owes $550 on a credit card. If she makes no purchases or payments she will go more and more into dept. Which of the following sequences describe her increasing monthly balance?

Answer 1

Her credit card balance would increase at an exponential rate.

The format for these equations is: y = ab^x.

The equation would be: y = 550(1.018)^x

Answer 2

550.00, 559.90, 569.98, 580.24, 590.68, ...