Answer:
Month Total Bill
1 1000
2 1,020
3 1,040.40
4 1,061.21
5 1,082.43
6 1,104.08
7 1,126.16
8 1,148.69
Step-by-step explanation:
Use the formula for compound interest
[tex]A = P(1+r)^t[/tex]
where A is the balance, P is the principal (credit card balance), r is the effective rate and t is the number of time periods
Here r = 2% computed monthly which is 2/100 = 0.02 in decimal and t = 1, 2,3,4,5,6,7,8 months
So 1 + r = 1+0.02 = 1.02
We can compute the monthly balance for each subsequent month by multiplying the previous month's balance by 1.02
All figures rounded to the nearest cent
Answer
Month Total Bill
1 1000
2 1,000 x 1.02 = 1,020
3 1,020 x 1.02 = 1,040.40
4 1,040.40 x 1.02 = 1,061.21
5 1,061.21 x 1.02 = 1,082.43
6 1,082.43 x 1.02 = 1,104.08
7 1,104.08 x 1.02 = 1,126.16
8 1,126.16 x 1.02 = 1,148.69
