PLEASE HELP clear up my confusion! Carrie took out a $12,000 personal loan to pay off her credit cards. She will not make a payment for 2 years and there is a 5% interest rate. How much will be owed in 2 years with monthly compounding? I know this is relatively simple but the variable that she doesn't pay for 2 years is confusing me on how to set up the problem.

$12,100.21

Step-by-step explanation:

the fact that she doesn't pay means that the amount won't change. use the compound interest formula a = p(1+(r/n))^(nt) for principal (original amount) p, frequency compounded (how often the money is compounded) n, interest rate r, and time t.

p=12000, r=0.05, n=12, t=2. a=12000(1+(0.05/12))^(12*2). a=12100.21

  $13,158.10

Step-by-step explanation:

The account balance with compound interest is ...

  A = P(1 +r/n)^(nt)

  A = $12,000(1 +0.05/12)^(12·2) ≈ $13,158.10 . . . . will be owed in 2 years

__

It's a straight compound interest problem. "No payments for 2 years" means the account continues to accrue compounded interest. It's basically a future-value problem, as opposed to an amortization or annuity problem where payments are involved.

sorry i need the points

step-by-step explanation:

biuuyb i\

uygybg bsyvyuenrs

ufir7gyuuf6

y6fy