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Add a late fee after interest and count the charging cycles

A man enters a coma after an accident on 10 January 2013 and misses payment of his credit-card balance M dollars due on 27 January. On each monthly 27th, unpaid balances first receive 2%2\% interest and then an additional late fee L dollars.

(a) Express his balance on 1 February 2013 in terms of M and L. mark

(b) Show that exactly n months after the accident, on the same day of the month, the accumulated balance is (1.02)nM+50L[(1.02)n−1](1.02)^nM+50L[(1.02)^n-1]. marks

(c) For M=1000M=1000, L=55L=55, find the least n for which the balance first exceeds $2010. marks

[2013/AJC/Promo/15]

CJC · Review problems · Question 22

Keep the interest-before-fee order and count completed monthly charging dates.

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