Friday
March 24, 2017

Post a New Question

Posted by on .

Robert Mason's account of $98.50 has been delinquent for three months. According to the office procedures manual, after 90 days a 2% service charge, compounded monthly, is added to future bills. What will be the amount owed after nine months?

  • math - , Tuesday, November 23, 2010 at 8:33pm

    Pt = Po

















    Pt = Po





    Pt = Po (r + 1)^n.

    r =2% / 100% = 0.02 = rate / mo.

    n = 12 comp/yr * 0.75 yr = 9 comp.

    Pt = 98.50 (1.02 )^9,

    Pt = 98.50 * 1.1951 =117.72 after 9mo.










    9r v








    9

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question