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

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.

Could you please show me step by step how you got this? Thanks

To calculate the amount owed after nine months, you need to consider the delinquent amount and the service charges added each month. Here's how you can do it:

1. Calculate the service charge for each month:
- Multiply the delinquent amount (98.50) by the service charge rate (2%):
98.50 x 0.02 = 1.97
- This gives you the service charge for one month.

2. Calculate the total service charges for nine months:
- Since the service charges are compounded monthly, you need to calculate the total accumulated service charges.
- Multiply the service charge for one month (1.97) by the number of months (9):
1.97 x 9 = 17.73
- This gives you the total amount of service charges for nine months.

3. Add the total service charges to the delinquent amount:
- Add the total service charges (17.73) to the initial delinquent amount (98.50):
98.50 + 17.73 = 116.23

Therefore, the amount owed after nine months would be $116.23. So your calculation is correct!