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20. Hauser Trucking recently purchased a new truck costing $157,800. The firm financed this purchase at 6.6 APR interest with
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Answer #1

To calculate the period in which the debt will be paid off use the formula of Nper (period) in excel

=nper(Rate,pmt,pv,fv)

Where:

Rate = 6.6%/12 (Since compounded monthly)

pmt = $4200 (use - sign before this since this is an outflow)

pv = $157800

fv = 0

=nper(6.6\%/12,-\$4200,\$157800,0)

Nper = 42.203 Months

To calculate this above figure in years divide it by 12 months

Nper in Years = \frac{42.203}{12}

Nper in Years = 3.52 Years

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

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