Suzanne opens a line of credit at a local bank, and immediately borrows 2010 dollars. 6 months
later, she repays 1060 dollars. 3 months after the repayment, she borrows 740 more dollars. 5
months later, she repays 610 dollars. If no other transactions take place and the interest rate is
1.15 percent per month (compounded monthly), how much will she owe two years after she
opened the line of credit?
Solution
Suzanne opens a line of credit at a local bank, and immediately borrows 2010 dollars. 6 months
later, she repays 1060 dollars. 3 months after the repayment, she borrows 740 more dollars. 5
months later, she repays 610 dollars. If no other transactions take place and the interest rate is
1.15 percent per month (compounded monthly), how much will she owe two years after she
opened the line of credit?
she owe two years after she opened the line of credit =( ((2010*(1+1.15%)^6 -
1060)*(1+1.15%)^3 + 740)*(1+1.15%)^5 - 610)*(1+1.15%)^10
she owe two years after she opened the line of credit = $ 1537.03
later, she repays 1060 dollars. 3 months after the repayment, she borrows 740 more dollars. 5
months later, she repays 610 dollars. If no other transactions take place and the interest rate is
1.15 percent per month (compounded monthly), how much will she owe two years after she
opened the line of credit?
Solution
Suzanne opens a line of credit at a local bank, and immediately borrows 2010 dollars. 6 months
later, she repays 1060 dollars. 3 months after the repayment, she borrows 740 more dollars. 5
months later, she repays 610 dollars. If no other transactions take place and the interest rate is
1.15 percent per month (compounded monthly), how much will she owe two years after she
opened the line of credit?
she owe two years after she opened the line of credit =( ((2010*(1+1.15%)^6 -
1060)*(1+1.15%)^3 + 740)*(1+1.15%)^5 - 610)*(1+1.15%)^10
she owe two years after she opened the line of credit = $ 1537.03
