math

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

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asked by GOGIRL
  1. 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.

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    posted by drwls
  2. Could you please show me step by step how you got this? Thanks

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    posted by GOGIRL

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