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
, 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
∴ ![A=16000(1+\frac{0.048}{12})^{12(1.25)}=16987.35](https://tex.z-dn.net/?f=A%3D16000%281%2B%5Cfrac%7B0.048%7D%7B12%7D%29%5E%7B12%281.25%29%7D%3D16987.35)
* She will owe $16987.35 when she begins making payments