The amount of money owed on a certain type of loan has two components…

Question

Prompt

The amount of money owed on a certain type of loan has two components: the principal balance of the loan and the amount of interest accrued on the loan. For a loan of this type, each payment was

298.00 an d t h er e w er e 60 p a y m e n t s t o t a l . P a r t o f e a c h p a y m e n tw a s a ppl i e d t o t h e p r in c i p a l ba l an ceo f t h e l o an, an d t h er es tw a s a ppl i e d t o t h e am o u n t o f in t er es t a ccr u e d o n t h e l o an . T h e am o u n t o f t h e 1 s tp a y m e n tt ha tw a s a ppl i e d t o t h e p r in c i p a l ba l an ce w a s

220.93. For each additional payment, the amount that was applied to the principal balance was approximately 0.5% greater than the amount that was applied to the principal balance for the previous payment. Which function best approximates the amount of the

x

th payment, in dollars, that was applied to the amount of interest accrued, where

x \leq 60

f (x) = 298.00 - 220.93 (1.005)^{x - 1}

f (x) = 298.00 - 220.93 (1.005)^{x}

f (x) = (298.00 - 220.93) (0.995)^{x - 1}

f (x) = (298.00 - 220.93) (0.995)