Suzy uses a credit card to buy a $ 2000 LCD TV at 18% ,if the interest is compounded monthly , and she make no payments , how much will end up owing after 2 years ? (When does this type of thing happen?)

Question

Suzy uses a credit card to buy a $ 2000 LCD TV at 18% ,if the interest is compounded monthly , and  she make no payments , how much will end up owing after 2 years ? (When does this type of thing happen?)

anonymous · Answer

This sounds like a deferment plan. Using the compound formula should suffice. A=P(1+r/n)^nt Remembering to change th18% into decimal form. 0.18

anonymous · Answer

she make no payments ,and use the same fourmula?

anonymous · Answer

including the minimum monthly payments?

anonymous · Answer

Suzy will end up oweing: 2000 x (1.18)^24. 1.18 being the interest factored in. and 24 being the number of months. 

What do u mean when u ask "When does this type of thing happen?"