You have just graduated from college and purchased a car for $7000. Your credit limit is $12,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 8%. What is the growth factor of your credit card balance?
a.1.02
c.1.08
b.1.8
d.1.2

Question

You have just graduated from college and purchased a car for $7000. Your credit limit is $12,000.  Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 8%. What is the growth factor of your credit card balance?
a.1.02
c.1.08
b.1.8
d.1.2

tkhunny · Answer

Please demonstrate your knowledge of the problem by writing the definition of "Growth Factor".

anonymous · Answer

Growth factor is the factor by which a quantity multiplies itself over time.

tkhunny · Answer

I do so wish that made enough sense.  Perhaps you can provide an example where you do know the answer?