At the beginning of a month, a customer owes a credit card company $8480. In the middle of the month, the customer repays $A, where A < $8480, and at the end of the month the company adds interest at a rate of 6% of the outstanding debt. This process is repeated with the customer continuing to pay off the same amount, $A, each month. (b) If A = 1000, calculate the amount owing at the end of the eighth month. (c) Show that the value of A for which the whole amount owing is exactly paid off after the nth payment is given by (see attached image) d) Find the value of A if the debt is to be paid off exactly after two years.
At the beginning of a month, a customer owes a credit card company $8480. In the middle of the month, the customer repays $A, where A < $8480, and at the end of the month the company adds interest at a rate of 6% of the outstanding debt. This process is repeated with the customer continuing to pay off the same amount, $A, each month. (b) If A = 1000, calculate the amount owing at the end of the eighth month. (c) Show that the value of A for which the whole amount owing is exactly paid off after the nth payment is given by (see attached image) d) Find the value of A if the debt is to be paid off exactly after two years.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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At the beginning of a month, a customer owes a credit card company $8480. In the middle of the month, the customer repays $A, where A < $8480, and at the end of the month the company adds interest at a rate of 6% of the outstanding debt. This process is repeated with the customer continuing to pay off the same amount, $A, each month.
(b) If A = 1000, calculate the amount owing at the end of the eighth month.
(c) Show that the value of A for which the whole amount owing is exactly paid off after the nth payment is given by (see attached image)
d) Find the value of A if the debt is to be paid off exactly after two years.
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