Problema Solution
a department store charges 1.25% per month on an unpaid balance for customers with charge accounts (interest is compounded monthly). a customer charges $200 and does not pay her bill for 6 months. what is the bill at this time?
Answer provided by our tutors
let 'b' the bill after 6 months
b = 200*(1 + 1.25/100)^6
b = 200*1.0125^6
b = $215.48
the bill after 6 months will be $215.48.