A person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month. (a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.) 20 × % (b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for Bn. 2064.6
A person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month. (a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.) 20 × % (b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for Bn. 2064.6
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
I'm not sure, if i was a number off or something

Transcribed Image Text:A person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of
1.5% per month.
(a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)
20
x %
Bri
(b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to
pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for B
2064.6
(c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)
23
months
(d) What is the total amount of money the person will have paid for the loan?
$ 3380.10
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images

Recommended textbooks for you

Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated

Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY

Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated

Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY

Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,

