2. A credit card company charges compound interest annually on any unpaid debts at 5%. Mr. Brian now has outstanding debt of $4,200. What will be his outstanding debt 3 years from now?
Assuming that he doesn't pay anything off, we have :
4200(1.05)3 = about $ 4862.03
Mr. Brian will owe $4,862.03 at the end of 3 years.
