Thread: Compound

Walmart charges 1.25% / month on the unpaid balance of a charge account. Interest is compounded monthly. A customer charges $600 and does not pay her bill for 6 months. What is her bill at that
time?

Originally Posted by Nusc

Walmart charges 1.25% / month on the unpaid balance of a charge account. Interest is compounded monthly. A customer charges $600 and does not pay her bill for 6 months. What is her bill at that
time?

The basic growth of the debt is governed by:



where is the amount owing after months (so dollars) and is the interest rate as a decimal fraction (so )

So:



All of which should be in your notes, so where exactly are you having problems.

CB