Question

If you borrowed $1000 at 16% interest, roughly how long would it take to pay back if making payments of $15 per month

Answer 1

Amount borrowed = $1,000
Annual interest rate = 16%
Monthly interest rate = 1.3333%
Monthly payment = $15

Let it will take n months to pay off this loan

$1,000 = $15 * PVA of $1 (1.3333%, n)

Using financial calculator:
I = 1.3333%
PV = -1000
PM = 15
FV = 0

N = 165.88

Number of months = 165.88

Number of years = 165.88 / 12
Number of years = 13.82