Suppose you owe â$700 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2â% per month on the unpaid balance and that the minimum payment is 3â% of the totalâ (balance plusâ interest), your balance after t months is given by âB(t) = 700â(.9894tâ).
1. Find your balance at each of the given times in partsâ (a) throughâ (c) below.
(a) five months
(b) one year (remember that t is in months)
(c) is the balance paid off in two years?