Credit-card interest A certain department store requires its credit-card customers to pay interest on unpaid bills at the rate of 18% per year compounded monthly. If a customer buys a television set for $500 on credit and makes no pay- ments for one year, how much is owed at the end of the year?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.2: Exponential Functions
Problem 50E
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Credit-card interest A certain department store requires its
credit-card customers to pay interest on unpaid bills at the
rate of 18% per year compounded monthly. If a customer
buys a television set for $500 on credit and makes no pay-
ments for one year, how much is owed at the end of the
year?
Transcribed Image Text:Credit-card interest A certain department store requires its credit-card customers to pay interest on unpaid bills at the rate of 18% per year compounded monthly. If a customer buys a television set for $500 on credit and makes no pay- ments for one year, how much is owed at the end of the year?
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