you owe $300 on your credit card. Each month you fail to make a payment, your balance increases by 2%. How much will you owe after 2 years of missing payments?
I am pretty sure that you find out how much 2% of 300 is and then multiply that by 24.
the answer given to us is $482.53. Not sure how she got it. still having problems with obtain the answer.
Huh. I am not sure. I am only in 8th grade so I don't know too much, but this is a fun problem. : )
To calculate how much you will owe after 2 years of missing payments, we need to calculate the balance at the end of each month considering the 2% increment. Here's how you can do it step by step:
1. Start with the initial balance of $300.
2. For each month, calculate the 2% increment by multiplying the balance by 0.02 (2% as a decimal). This gives you the amount that the balance increases by each month.
3. Add the increment to the balance each month.
4. Repeat steps 2 and 3 for 24 months (2 years).
5. After 24 months, the final balance will be the total amount owed.
Let's calculate it together:
Month 1:
Initial Balance: $300
Increment: 0.02 * $300 = $6
Balance: $300 + $6 = $306
Month 2:
Initial Balance: $306
Increment: 0.02 * $306 = $6.12
Balance: $306 + $6.12 = $312.12
Repeat the above steps for the remaining months until Month 24.
Month 24:
Initial Balance: Balance from Month 23
Increment: 0.02 * Balance from Month 23
Balance: Balance from Month 23 + Increment
By performing these calculations, you will find the amount owed at the end of 24 months.