You have just received an offer in the mail from Friendly Loans. The company is offering...

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You have just received an offer in the mail from Friendly Loans. The company is offering...

You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $5,250 with low monthly payments of $95 per month. If the interest rate on the loan is an APR of 14.6 percent compounded monthly, how long will it take for you to pay off the loan?

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Answer 1

Answer #1

use financial calculator as

PV=-5250 is the loan amount

FV=0 as loan is repaid

PMT=95 is monthly repayment of loan

1/Y=14.6/12=1.2167 is monthly rate

Click CPT

Click N=92.27 months or 7.69 years

the above is the answer

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Answer 2

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