Dillon took out a 2-year loan for $2375 at a sports-equipment store to be paid back with monthly payments at a 6.6% APR, compoun

Question

4 years ago

14

Dillon took out a 2-year loan for $2375 at a sports-equipment store to be paid back with monthly payments at a 6.6% APR, compoun

ded monthly. If the loan offers no payments for the first 5 months, how much will Dillon owe when he begins making payments?
A. $2709.15
B. $2441.03
C. $2375.00
D. $2536.58

Mathematics

2 answers:

Shkiper50 [21] · Answer 1 · 2021-12-16T10:57:50+03:00

Shkiper50 [21]4 years ago

8 0

Answer:

B. 2441.03

Step-by-step explanation:

A P E X

Vera_Pavlovna [14] · Answer 2 · 2021-12-16T09:05:57+03:00

Vera_Pavlovna [14]4 years ago

7 0

APR=6.6% compounded monthly.
After 5 months without payment,
he owes
F=P(1+i/12)^n [compound interest formula]
=2375(1+0.066/12)^5
=2441.03