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, compounded 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

Question

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, compounded 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

amistre64 · Answer

well, we owe more in less time now  ....

amistre64 · Answer

ok, not asking for monthly payments; its asking for the accrued balance

amistre64 · Answer

well, how would you suggest we compound it for 5 months?