Answer:
She will owe $16987.35 when she begins making payments
Step-by-step explanation:
* Lets explain how to solve the problem
- The loan is $16,000
- The loan at a 4.8% APR compounded monthly
- She will begin paying off the loan in 15 months
- The rule of the future money is [tex]A=P(1 + \frac{r}{n})^{nt}[/tex], where
# A is the future value of the loan
# P is the principal value of the loan
# r is the rate in decimal
# n is the number of times that interest is compounded per unit t
# t = the time in years the money is borrowed for
∵ P = $16,000
∵ r = 4.8/100 = 0.048
∵ n = 12 ⇒ compounded monthly
∵ t = 15/12 = 1.25 years
∴ [tex]A=16000(1+\frac{0.048}{12})^{12(1.25)}=16987.35[/tex]
* She will owe $16987.35 when she begins making payments
Answer:
$16,987.35, since Patricia is responsible for the interest on the loan that accrues before she starts making payments
(AP3X)
