Question

For a certain credit card, the total amount, A ,that a customer owes is given by the following formula. In the formula, P is the starting balance and n is the number of months of debt, assuming interest is compounded monthly. Suppose you begin with a credit card debt of $1000. After one year, you will owe $ _______. (Round your answer to the nearest cent and enter only the number.)

Answer 1

A=P(1.015)^n

Answer 2

P= 1000 and n = 12

Answer 3

so would I do 1000 multiplyed by 1.015 multiplyed by 12?

Answer 4

a^n means a to the nth power: a a a a...a n times.