Question
The following table shows the expenses and payments for 2 months on a credit card account with an initial balance of $781. Assume that the
The following table shows the expenses and payments for 2 months on a credit card account with an initial balance of $781. Assume that the interest rate is 1% per month (12% APR) and that the interest for a given month is charged on the balance from the previous month.
This means the amount owed in interest each month is the output of a function, f(x), that uses the input of the previous month's balance, x.
f(x)=0.01x
The new month's balance is the output of a function, g(x,p,e,a)g(x,p,e,a), that use the following inputs:
- xx, the previous month's balance
- pp, the payment
- ee, the expenses charged on credit for the month
- aa, the amount owed in interest
g(x,p,e,a)=xp+e+a
Use the two functions to fill in the table below. For each question, round to the nearest penny and don't use commas or dollar signs.
Month | Payment | Expenses | Interest | Balance |
0 | - | - | - | $781 |
1 | $183 | $179 | $____________ | $____________ |
2 | $112 | $25 | $____________ | $____________ |
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