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Suppose you owe $400 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2% per month on the unpaid balance and that the minimum payment is 4% of the total (balance plus interest), your balance after t months is given by B(t)=400(0.9792¹). Find your balance at each of the given times. Complete parts (a) through (e) below. After six months, the balance is $ (Round to the nearest cent as needed.) (b) one year (remember that t is in months) After one year, the balance is $. (Round to the nearest cent as needed.) (c) seven years ... After seven years, the balance is $ (Round to the nearest cent as needed.) (d) nine years After nine years, the balance is $ (Round to the nearest cent as needed.) (e) On the basis of your answers to parts (a)-(d), what advice would you give to your friends about minimum payments? O A. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost. O B. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. O C. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. OD. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.

Suppose you owe $400 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2% per month on the unpaid balance and that the minimum payment is 4% of the total (balance plus interest), your balance after t months is given by B(t)=400(0.9792¹). Find your balance at each of the given times. Complete parts (a) through (e) below. After six months, the balance is $ (Round to the nearest cent as needed.) (b) one year (remember that t is in months) After one year, the balance is $. (Round to the nearest cent as needed.) (c) seven years ... After seven years, the balance is $ (Round to the nearest cent as needed.) (d) nine years After nine years, the balance is $ (Round to the nearest cent as needed.) (e) On the basis of your answers to parts (a)-(d), what advice would you give to your friends about minimum payments? O A. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost. O B. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. O C. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. OD. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.

Advanced Engineering Mathematics
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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Suppose you owe $400 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2% per month on the unpaid balance and that the minimum payment is 4% of the total (balance plus interest), your balance after t months is given by B(t) = 400(0.9792¹). Find your balance at each of the given times. Complete parts (a) through (e) below. After six months, the balance is $. (Round to the nearest cent as needed.) (b) one year (remember that t is in months) After one year, the balance is $ (Round to the nearest cent as needed.) (c) seven years After seven years, the balance is $ (Round to the nearest cent as needed.) (d) nine years After nine years, the balance is $ (Round to the nearest cent as needed.) (e) On the basis of your answers to parts (a)-(d), what advice would you give to your friends about minimum payments? A. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost. B. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. C. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. D. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.
Transcribed Image Text:Suppose you owe $400 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2% per month on the unpaid balance and that the minimum payment is 4% of the total (balance plus interest), your balance after t months is given by B(t) = 400(0.9792¹). Find your balance at each of the given times. Complete parts (a) through (e) below. After six months, the balance is $. (Round to the nearest cent as needed.) (b) one year (remember that t is in months) After one year, the balance is $ (Round to the nearest cent as needed.) (c) seven years After seven years, the balance is $ (Round to the nearest cent as needed.) (d) nine years After nine years, the balance is $ (Round to the nearest cent as needed.) (e) On the basis of your answers to parts (a)-(d), what advice would you give to your friends about minimum payments? A. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost. B. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. C. The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost. D. The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.
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Given Balace B(t)=400(0.9792)t

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