Question

! Apps Welcome to LADWP The John Stewart. 5 Company Director Renter ren ny FIN-320-24100 Principles of Finance 20EW4 201 Fu Homework: 6-1 MyFinanceLab Assignment Save Score: 0 of 4 pts 6 of 12 (3 complete) HW Score: 24%, 12 of 50 pts P6-13 (similar to) Question Help (Annuity number of periods) How long will it take to pay off a loan of $47,000 at an annual rate of 8 percent compounded monthly if you make monthly payments of $600? Use five decimal places for the monthly percentage rate in your calculations. Styles Pane The number of years it takes to pay off the loan is years. (Round to one decimal place.) JM per Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer theirs a number of boxing organization and the leadership is all over the place with the More hoto on this function

Answer 1

Amount borrowed = $47,000
Monthly payment = $600

Annual interest rate = 8.00%
Monthly interest rate = 8.00% / 12
Monthly interest rate = 0.66667%

Let it will take n months to pay off this loan

$47,000 = $600 * PVIFA(0.66667%, n)

Using financial calculator:
I = 0.66667%
PV = -47000
PMT = 600
FV = 0

N = 111.2

Number of months = 111.2

Number of years = 111.2 / 12
Number of years = 9.3

The number of years it takes to pay off the loan is 9.3 years