How to Calculate Company Debt Repayment with Monthly Reductions

What is the formula to calculate the company's debt after a certain number of months?

a) d = 3600 - 300m

b) d = 300m - 3600

c) d = 3600 + 300m

d) d = 3600 - m

Answer:

The company's debt repayment situation can be represented by the equation d = 3600 - 300m.

Explanation: In this scenario, the company owes a bank $3600 and makes monthly repayments of $300. The correct equation to find the remaining debt after m months is d = 3600 - 300m. This means that the debt decreases by $300 each month.

This equation follows the concept of linear equations, where the debt decreases in a linear fashion as months go by. The initial debt of $3600 is subtracted by 300 times the number of months to calculate the remaining debt. The variable m represents the number of months elapsed.

Understanding how to calculate debt repayments is crucial for managing financial obligations effectively. By using this formula, the company can track its progress in reducing debt over time.