The formula for the amount due on a loan is A= P (1+(r/m))^(mt)
Now in the question the time in years (t) is 6 years 9 months.
P= $17500 r=0.085
How do I write the time(t) in the equation?
Also, what if the time was 4 years 3 months, how would I write that for the time in years (t)?
Also, what does semiannually, monthly and continuously mean?
The choice of time (in year or in Month) depends on
the nature of compound periods.
If the amount P is compounded monthly, we should write
number of periods n = 6 year and 9 months into t = ...
This explains how to use the compound interest equation for a loan.