Question

Question 11 of 13 Lush Gardens bought a new truck for $85,000. It paid $10,000 as a down payment and financed the balance at 4.50% compounded monthly. If the company makes payments of $1,650 at the end of every month, how long will it take to pay off the loan? year(s) + month(s) Round up to the next payment period. Give your answer in years and months.

Answer 1

Sol? | cost of new bwk a $ 85,000 down payment $10,000 financed amount: $ 15,000 Intet sate = is 4. Soy. p.a 4. Se tu monthly -- = 0.00375 Monthly payment (PMT)= $1,650 using Present value ordinary Annuity formula PV= PMT [L= (1+)n] Here PVE $15.000 na number of months them, 15000 = 1650 - (1+0.00375) 0.00313 5000 X 0.06.215 1650 = [1- (1100375)"] = 0.110454545 = 1- (1:00315) (1.00315)." 1-0110454545 111003751 - 0.829545455 on en (1:00.313 ) = An (0:02.95.45455) -nin (0.829545455) en (1.00375) -n- 49.92 734 na 49.92734 50 months Tlone 4 years + 2 months.