comparing credit card balances\nyou have a credit card balance of $800. you are considering two different…

comparing credit card balances\nyou have a credit card balance of $800. you are considering two different payment strategies for this balance on the same credit card, which has an annual interest rate of 12%. the first strategy involves making the minimum payments of 3% of the balance or $25, whichever is higher. the second strategy involves making fixed payments of $150 every month. the table shows how the balance changes over time with each payment strategy.\nassuming the trend continues, after how many least months will the balance with minimum payments be more than double the balance with fixed payments?

comparing credit card balances\nyou have a credit card balance of $800. you are considering two different payment strategies for this balance on the same credit card, which has an annual interest rate of 12%. the first strategy involves making the minimum payments of 3% of the balance or $25, whichever is higher. the second strategy involves making fixed payments of $150 every month. the table shows how the balance changes over time with each payment strategy.\nassuming the trend continues, after how many least months will the balance with minimum payments be more than double the balance with fixed payments?

Answer

Explanation:

Step1: Calculate double of balance with fixed payments for each month

For month 1: Double of (658) is (2\times658 = 1316), (783<1316) For month 2: Double of (514.58) is (2\times514.58=1029.16), (765.83 < 1029.16) For month 3: Double of (369.73) is (2\times369.73 = 739.46), (748.49>739.46)

Answer:

3 months