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:

Probability

The quantification of an event's chance of happening, represented as a number from 0 to 1.

Sample Space

The collection of every potential result or outcome from a probabilistic experiment.

Random Experiment

An experiment or process for which the outcome cannot be predicted with certainty beforehand.

Mutually Exclusive

Two events that cannot occur at the same time, implying that the occurrence of one event precludes the occurrence of the other.