Finance Pierre began the year with an unpaid balance of $300 on his credit card. Because he had not read the credit card agreement, he did not realize that the company charged 1.8% interest each month on his unpaid balance, in addition to a $29 penalty in any month he might fail to make a minimum payment. Pierre ignored his credit card bill for 4 consecutive months before finally deciding to pay off the balance. What did he owe after 4 months of non-payment?
Step 1 Write a recursive definition.
Initial condition:
Recursive formula:
Why is it helpful to change FLOAT to 2?
This problem involves money, so, real-world solutions will only have 2 decimal places.
Step 2 Use a calculator. In the MODE menu, change the digit display from FLOAT to 2.
Enter 300 in the home screen. Enter the recursive formula 1.018ANS+29. Press
|
Press
|
|
After 4 months, Pierre owes $441.36.
Find the first five terms of each sequence.