Sam is getting ready for a big date when he realizes that he has no money. his roommate, bill, also has no money, but he has a credit card. knowing that nobody will let sam use bill’s credit card, sam asks bill to pull out a cash advance for $120.00. bill agrees under the condition that sam is responsible for all interest that accrues on the cash advance which is a 30% interest rate, compounded monthly. 5 full years go by before the $120 cash advance is repaid. how much should bill ask sam to pay in interest for the cash advance?

$408 (only interest)

Step-by-step explanation:

we must determine the monthly interest rate = 30% / 12 = 2.5%

there are 60 months in five years (= 12 months per year x 5 years)

to calculate total interest accrued = [(1 + 2.5%)⁶⁰ - 1] x $120 = (4.4 - 1) x $120 = 3.4 x $120 = $408 (only interest)

total payment = $408 + $120 = $528

graph b

step-by-step explanation:

one solution- graph a (clear intercepting point.)

no solution- graph b (they're parallel, there will never be a point of interception.)

infinite solutions- graph c (all points intercept.)