You have a credit card with a balance of $3000. Each month the minimum payment is 2.5% of the balance. The monthly interest rate is 1.5% of the balance. You decide you would like to pay off this card by making the minimum payment each month. You cut up the card so that you cannot change your mind and use it again.
a) Find a decreasing periodic exponential function that models the balance at the beginning of each month.
b) How many months will it take to get the balance down to $5.00?
2 answers