document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=62159>Question 62159</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0495012661/algebrahomeworkh>college algebra</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> i can't figure this one out.  Credit card interest.  Thanks for your help.\r<BR>\n" );
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document.write( "A bank credit card charges interest at the rate of 21% per year, compounded monthly.  If a senior in college chares her last tuition bill of $1,500 and intends to pay it in one year, what will she have to pay.  \r<BR>\n" );
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document.write( "Thanks again. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #42911 by </B><A HREF=/tutors/aboutme.mpl?userid=joyofmath><B>joyofmath(189)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=joyofmath><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=42911\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <b>A bank credit card charges interest at the rate of 21% per year, compounded monthly.  If a senior in college chares her last tuition bill of $1,500 and intends to pay it in one year, what will she have to pay.  </b>\r<BR>\n" );
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document.write( "21% per year interest = 21/12 = 1 3/4% per month = .0175.\r<BR>\n" );
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document.write( "If the student charges $1500 then after one month she'll owe 1500 (balance) + .0175*1500 (interest). We can write the balance after 1 month as <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1500%2A1.0175 ALIGN=MIDDLE  ALT=\"1500%2A1.0175\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "After 2 months she'll owe 1500*1.0175 times another 1.0175 on the balance after the first month plus its interest. The balance after 2 months = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1500%2A1.0175%5E2 ALIGN=MIDDLE  ALT=\"1500%2A1.0175%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "Repeating the pattern, after 12 months her balance = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1500%2A1.0175%5E12 ALIGN=MIDDLE  ALT=\"1500%2A1.0175%5E12\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "Use a calculator and you get $1847.16 as the balance after 12 months. </SPAN>\n" );
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