Joey Realizes That He Has Charged Too Much on His

question 151

Multiple Choice

Joey realizes that he has charged too much on his credit card and has racked up $3,000 in debt. If he can pay $150 each month and the card charges 18 percent APR (compounded monthly) , how long will it take him to pay off the debt?

• A) 13.03 months
• B) 14.68 months
• C) 20.00 months
• D) 23.96 months

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Definitions:

Bayes Law

A principle that details the likelihood of a particular occurrence, taking into account previously understood circumstances that may have a connection to the occurrence.

Posterior Probabilities

The updated likelihoods of events or hypotheses upon considering fresh evidence or information.

Expected Monetary Value

A statistical technique in decision-making under uncertainty, calculating the weighted average of all possible outcomes, considering both the probabilities and the monetary impacts.

Optimal Act

The best or most favorable action to take in a given situation, often determining the maximum efficiency or minimum cost.