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Nancy_Lam
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?)
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
she make no payments ,and use the same fourmula?
including the minimum monthly payments?
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?"