Question

Growing linearly, the balance owed on your credit card doubles from $800 to $1600 in6 months. If the balance were growing according to the exponential function() = 800(1 + 0.122) where represents the number of months, what would thebalance be after 6 months? Round your answer to the nearest cent.

Answer 1

Hi there. To solve this question, we'll have to determine the balance after 6 months given that it were growing according to the function:

$f(x)=800\cdot(1+0.122)^x$

For this, we plug x = 6 into the formula:

$f(6)=800\cdot(1+0.122)^6=800\cdot1.0122^6$

Using a calculator, we get that:

$f(6)\approx860.37$

We round the answer to the nearest cent as:

$f(6)=860.4$