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?

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?

tkhunny · Answer

Please define "Growth Factor".

Are you sure it's not just 1.08?

anonymous · Answer

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

tkhunny · Answer

Well, then there you go.