Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not increase your credit line more than 10% each 6-month period. Assuming they increase your limit each 6-month period by 10%, how long will it take to increase your limit to $1,600?

2 years and 6 months

Explanation:

after 6months

$1,000 x 10% = $100

$1,000 + $100 = $1,100

after 1 year

$1,100 x 10% = $110

$1,100 + $110 = $1,210

after 1 year and 6 months

$1,210 x 10% = $121

$1,210 + $121 = $1,331

after 2 years

$1,331 x 10% = $133.10

$1,331 + $133.10 = $1,464.10

after 2 years and 6 months

$1,464.10 x 10% = $146.41

$1,464.10 + $146.41 = $1,610.51