Problem

The balance owed on your credit card doubles from $\$ 800$ to $\$ 1600$ in 6 months. If the balance is growing linearly then it would take 61.5 months to reach $\$ 9000$. If, on the other hand, the balance is growing exponentially, $f(x)=800(1+0.122)^{x}$ where $x$ represents the number of months, what would the balance be after 61.5 months? Round your answer to the nearest cent.

Solution

Step 1 :Given the exponential growth function \(f(x)=800(1+0.122)^{x}\), where \(x\) represents the number of months.

Step 2 :Substitute \(x=61.5\) into the function to find the balance after 61.5 months.

Step 3 :Calculate the result to get the balance: \(f(61.5)=800(1+0.122)^{61.5}=949840.5091231895\).

Step 4 :Round the balance to the nearest cent to get \$949840.51.

Step 5 :Final Answer: The balance after 61.5 months would be approximately \(\boxed{949840.51}\).

From Solvely APP
Source: https://solvelyapp.com/problems/24743/

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