Find a formula for the balance b after t monthly payments

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Reference no: EM131057920

Please explain in writting how you find the formula. Please write down explanation, not just the final answer.

Assume that you have a balance of $8000 on your MasterCard and that you make no more charges. Assume that MasterCard charges 12% APR and that each month you make only the minimum payment of 5% of the balance.

Find a formula for the balance B after t monthly payments. (Enter numerical values to four decimal places.)

Reference no: EM131057920

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