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23 May, 14:48

Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not increase your credit line more than 10% each 6-month period. Assuming they increase your limit each 6-month period by 10%, how long will it take to increase your limit to $1,600?

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  1. 23 May, 15:27
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    2 years and 6 months

    Explanation:

    after 6months

    $1,000 x 10% = $100

    $1,000 + $100 = $1,100

    after 1 year

    $1,100 x 10% = $110

    $1,100 + $110 = $1,210

    after 1 year and 6 months

    $1,210 x 10% = $121

    $1,210 + $121 = $1,331

    after 2 years

    $1,331 x 10% = $133.10

    $1,331 + $133.10 = $1,464.10

    after 2 years and 6 months

    $1,464.10 x 10% = $146.41

    $1,464.10 + $146.41 = $1,610.51
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