Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

The table shows a schedule of Mr. Kirov's plan for paying off his credit card balance.

\begin{tabular}{|c|c|c|c|c|}
\hline \multicolumn{5}{|c|}{ Mr. Kirov's Payment Plan } \\
\hline Balance & Payment & New Balance & Rate & Interest \\
\hline[tex]$\$[/tex] 800.00[tex]$ & $[/tex]\[tex]$ 100$[/tex] & [tex]$\$[/tex] 700.00[tex]$ & 0.012 & $[/tex]\[tex]$ 8.40$[/tex] \\
\hline[tex]$\$[/tex] 708.40[tex]$ & $[/tex]\[tex]$ 100$[/tex] & [tex]$\$[/tex] 608.40[tex]$ & 0.012 & $[/tex]\[tex]$ 7.30$[/tex] \\
\hline[tex]$\$[/tex] 615.70[tex]$ & $[/tex]\[tex]$ 100$[/tex] & [tex]$\$[/tex] 515.70[tex]$ & 0.012 & $[/tex]\[tex]$ 6.19$[/tex] \\
\hline \hline
\end{tabular}

If Mr. Kirov continues to make monthly payments of [tex]$\$[/tex] 100$ and does not make any new purchases, how many more payments will he need to make before the balance is 0?

A. 4 payments
B. 5 payments
C. 6 payments
D. 7 payments

Sagot :

GinnyAnswer
To determine how many more payments Mr. Kirov needs to make before the balance is zero, let's analyze the intermediate balances and interest added each month until the balance is completely paid off. The problem states that he will make monthly payments of [tex]$100, and no new purchases are made with an interest rate of 1.2%. The initial data and first three entries are given: - Beginning balance: \$[/tex]800.00
- Monthly payment: \[tex]$100.00 - Interest rate: 1.2% per month The table provides the first three months of payments as follows: | Month | Balance | Payment | Interest Rate | Interest | New Balance | |-------|----------|---------|----------------|-----------|--------| | 1 | \$[/tex]800.00 | \[tex]$100.00 | 0.012 | \$[/tex]8.40 | \[tex]$708.40 | | 2 | \$[/tex]708.40 | \[tex]$100.00 | 0.012 | \$[/tex]7.30 | \[tex]$615.70 | | 3 | \$[/tex]615.70 | \[tex]$100.00 | 0.012 | \$[/tex]6.19 | \[tex]$515.70 | Following the same methodology, let's continue to calculate: #### Month 4: - Previous Balance: \$[/tex]515.70
- Monthly Interest = \[tex]$515.70 * 0.012 = \$[/tex]6.19
- New Balance after Payment = \[tex]$515.70 - \$[/tex]100 + \[tex]$6.19 = \$[/tex]421.89

#### Month 5:
- Previous Balance: \[tex]$421.89 - Monthly Interest = \$[/tex]421.89 * 0.012 = \[tex]$5.06 - New Balance after Payment = \$[/tex]421.89 - \[tex]$100 + \$[/tex]5.06 = \[tex]$326.95 #### Month 6: - Previous Balance: \$[/tex]326.95
- Monthly Interest = \[tex]$326.95 * 0.012 = \$[/tex]3.92
- New Balance after Payment = \[tex]$326.95 - \$[/tex]100 + \[tex]$3.92 = \$[/tex]230.87

#### Month 7:
- Previous Balance: \[tex]$230.87 - Monthly Interest = \$[/tex]230.87 * 0.012 = \[tex]$2.77 - New Balance after Payment = \$[/tex]230.87 - \[tex]$100 + \$[/tex]2.77 = \[tex]$133.64 #### Month 8: - Previous Balance: \$[/tex]133.64
- Monthly Interest = \[tex]$133.64 * 0.012 = \$[/tex]1.60
- New Balance after Payment = \[tex]$133.64 - \$[/tex]100 + \[tex]$1.60 = \$[/tex]35.24

Since the remaining balance after 8 months (approx. \[tex]$35.24) will need another payment, we calculate for the final month: #### Month 9: - Previous Balance: \$[/tex]35.24
- Monthly Interest = \[tex]$35.24 * 0.012 = \$[/tex]0.42
- New Balance after Payment = \[tex]$35.24 - \$[/tex]100 + \[tex]$0.42 = -\$[/tex]64.34

Since the balance is negative after these payments, no further payment is required once the balance crosses zero.

So, Mr. Kirov will need 7 more payments to completely pay off his credit card balance. Therefore, the correct option is:

- 7 payments
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.