College

The balance owed on your credit card triples from [tex]\$800[/tex] to [tex]\$2400[/tex] in 12 months. If the balance is growing exponentially, [tex]f(x) = 800(1 + 0.096)^x[/tex], where [tex]x[/tex] represents the number of months, what would the balance be after 46.5 months? Round your answer to the nearest cent.

Answer :

To find out the balance owed after 46.5 months if the growth is exponential, we start with the exponential growth formula:

[tex]\[ f(x) = 800(1 + 0.096)^x \][/tex]

In this formula:
- [tex]\( 800 \)[/tex] is the initial balance on the credit card.
- [tex]\( 0.096 \)[/tex] is the growth rate per month.
- [tex]\( x \)[/tex] is the number of months, which in this case is 46.5.

To find the balance after 46.5 months:

1. Insert the values into the formula:
[tex]\[ f(46.5) = 800 \times (1 + 0.096)^{46.5} \][/tex]

2. Calculate the expression inside the parentheses:
[tex]\[ 1 + 0.096 = 1.096 \][/tex]

3. Raise [tex]\( 1.096 \)[/tex] to the power of 46.5:
[tex]\[ (1.096)^{46.5} \][/tex]

4. Multiply the result by 800 to get the final balance.

After performing these steps, the balance is found to be:

[tex]\[ 56791.16 \][/tex]

Hence, after 46.5 months, the balance on the credit card would be approximately \$56,791.16, rounded to the nearest cent.