Question

You just obtained a credit card. You immediately purchase a digital camera for $160. Your credit limit is $4000. Let’s assume that you make no payments and purchase nothing more and there are no other fees. The monthly interest rate is 1.42%. What is the growth factor of your credit card balance?

Answer 1

Every month your balance includes the original amount (100%) and the added the monthly interest  (1.42%)  so each  month  the balance will be 101.42%  of pior month's balance move  the decimal point two points two places to the left to make that into a decimal 

So the answer is 101.42