Assume that you have a balance of $3000 on your American Express credit card and that you make no more charges. If your APR is 18% and each month you make only the minimum payment of 4% of your balance, then the formula for the balance after t monthly payments is given by 3000(0.9744)t . What will the balance be after 20 months?
A. $1785.94
B. $980.10
C. $1609.96
D. $4858.62
1 answer
3000(0.9744^20) = 1785.94
0 answers