A person borrows $3,000 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. 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 Bn be the balance owed on the card after n months. Find an explicit formula for Bn . b. What is the total amount of money the person will have paid for the loan?
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
A person borrows $3,000 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. 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 Bn be the balance owed
on the card after n months. Find an explicit formula
for Bn .
b. What is the total amount of money the person will have
paid for the loan?
This is for my discrete mathematics class I think I have defined the correct recursive function for this being f(n) = f(n-1)(1.015) -150 my issue is making this be an explicit formula.
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