While Donald ignored the situation, the credit company was adding 24% interest (compounded monthly) to the $8,000 he already owed. A) When the debt reaches $9,500, the credit company will notify the police, and will file charges against Donald. Write an equation in terms of time t (in years) to show how soon this will happen.
+1491 Well lets absorb the info we have here and what we know:
Compounded periodically -> A= P(1+(r/n))^(nt)
Compunded monthly -> n=12
Already owed $8000 -> P=8000
$9500 means the end of the line for Donald -> A=9500
24% interest -> r=.24
Just use the info here to figure it out...
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