You have a balance of $15,000 for your tuition on your American Express credit card. If your APR is 21%, you make no further charges, and each month you make only the minimum payment of 3% of your balance, then the formula for the balance after t monthly payments is given by 15,000(0.986975)t . What will the balance be after 10 years?

Question

A. $3768.92
B. $4043.03
C. $3150.00
D. $3110.50

Answer 1

Hmmm -- 10 math problems -- with no indication that you've made any attempt to solve them.

Please do not post any more problems until you've shown us your work on the ones you've already posted.

Answer 2

I think it's A.

15,000(0.986975)^10(12)

Answer 3

Using the given formula, your expression is correct, but its value is 3110.50 (D)

Expressed correctly, of course, it would be

15,000(0.986975)^(10*12)

You must have pushed some buttons wrong if you got (A). Or just guessed...