Asked by GOGIRL

John's account of 98.50 has been delinquent for 3 mnths. After 90 days office charges a 2% service charge, compounded monthly that is added to future bills. What would be the amount owed after nine months? My math is 98.50 x 0.02= 1.97 1.97 x 12months =23.64 Take 3months off that it leaves 17.73 add that to 98.50 = 116.23 for nine months Hope I'm right Thanks
Answered by drwls
The service charges are compounded, so they get higher each month. Service charges are assessed seven times, at the ends of months 3,4,5,6,7,8, and 9.
98.50*(1.02)^7 = $113.15.
Answered by GOGIRL
Could you please show me step by step how you got this? Thanks
There are no AI answers yet. The ability to request AI answers is coming soon!