lulu took out a 3 - year loan for $1800 at an electronics store to be paid back with monthly payments at a…

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual percentage rate (APR) in decimal form, $n$ is the number of times interest is compounded per year, and $t$ is the number of years.

Step2: Convert the given values to the appropriate form

The principal amount $P=$1800$, the annual percentage rate $r = 15.6%=0.156$, the number of times compounded per year $n = 12$ (compounded monthly), and the time $t=\frac{8}{12}$ years.

Step3: Substitute the values into the formula

$A=1800\times(1 +\frac{0.156}{12})^{(12\times\frac{8}{12})}$ First, calculate the value inside the parentheses: $\frac{0.156}{12}=0.013$, then $1+\frac{0.156}{12}=1 + 0.013=1.013$. And $12\times\frac{8}{12}=8$. So $A = 1800\times(1.013)^{8}$.

Step4: Calculate $(1.013)^{8}$

$(1.013)^{8}\approx1.108856$.

Step5: Calculate the final amount

$A=1800\times1.108856=$1995.9408\approx$1995.94$

Answer:

D. $$1995.94$