Question

If claire does not make any payments, how much will she owe after ten years? $12,136.67 $3,481.24 $6,090.90 $3,232.74

Answer 1

The interest formulas will be used to find the amount Claire owes. If the amount has a single compounding per year, simple interest is used, otherwise, compound interest is used.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of money after t years in is modeled by:

$A(t) = A(0)(1 + rt)$

In which:

• A(0) is the initial amount.

• r is the interest rate, as a decimal.

What is compound interest?

The amount of money earned, in compound interest, after t years, is given by:

$A(t) = P\left(1 + \frac{r}{n}\right)^{nt}$

In which:

• A(t) is the amount of money after t years.

• P is the principal(the initial sum of money).

• r is the interest rate(as a decimal value).

• n is the number of times that interest is compounded per year.

• t is the time in years for which the money is invested or borrowed.

More can be learned about interest at https://brainly.com/question/25781328

Answer 2

Answer:

a. $12,136.67

Step-by-step explanation: