In general an annual rate of 
compounded monthly will multiply the amount by a factor of 
each month.
Each month of 4.3% is a factor of
. That goes for five months, so is multiplied by itself five times, so gets a fifth power.
Each month of 13.7% is a factor of
. He pays this for 12-5=7 months, so it gets an exponent of seven.
We started the year owing $2600 of principal, so after the year we owe
.
Choice A.
Each month of 4.3% is a factor of
Each month of 13.7% is a factor of
We started the year owing $2600 of principal, so after the year we owe
Choice A.