Creating an Exponential Model In this activity, you will formulate and solve an exponential equation that models a real-world situation.
Emma doesn't have experience using credit cards. In fact, she just got her first one. She is also about to start her first year
of college. She uses her new credit card to purchase textbooks for her classes. The total comes to $300. These are the
terms of her credit card:
• It has a 15% annual interest rate.
• The interest is compounded monthly
• The card has $0 minimum payments for the first four years it is active.
The expression that models this situation is P(1 + r/n)^nt, where (1 + r/n) represents the growth factor of the interest rate.