24
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 24 • 25-26 CRX Math Models with Applications 7052A

You have just graduated from college and purchased a car for $6000. Your credit limit is $24,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 14%. Use the table feature on your graphing calculator to determine how much you will owe after 3 months..

Answer
A
$9075.54
B
$36,302.15
C
$35,557.06
D
$8889.26

Explanation

With no payments or new purchases, the balance grows by 14% each month. After 3 months, calculate $6,000 × 1.14³ = $8,889.264, which rounds to $8,889.26. The correct choice is $8,889.26.

AI-written and checked against the verified answer.

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