jmc

Question

A 1% late charge was added to Jenna's bill on the 30^th day past its due date. The resulting total was then increased by 1% because she did not pay the bill in the next 30 days either. Her original bill was 400$. Exactly how much is the bill now?

Accepted Answer

The first late charge brings the bill to

400 \cdot 1.01 = 400 + 4 = 404

. The second late charge brings the bill to

404 \cdot 1.01 = 404 + 4.04 = 408.04

dollars.

-OR-

Each increase multiples the bill by

1 + 1% = 1.01

. Therefore, her final bill is

\

400(1.01)^2=\

408.04

.