How would we handle a situation where we wanted to
calculate a balance after 19 months or 27 months?
Scenario: Kira takes a $12,000 loan that has a 5 year term at 4.25% compounded daily. The terms of the loan
state that she can make no payments for 6 months. After reading the fine print, Kira notices that interest
will continue to accumulate during this 6 month grace period that will be rolled over into her loan balance.
1. If the compound interest formula is written in years, what value should you use for t to
represent 6 months?