Huntington Realty would like to buy some additional land and construct a new office building. The...
Huntington Realty would like to buy some additional
land and construct a new office building. The total cost
is $20 million. The company has to take out a loan for
the entire project. The company can afford to make
monthly payments of $290,000. The interest rate on
the loan is 7 percent compounded monthly. How many
months will it take to pay off the loan?
Homework Answers
Calculating Time period to payoff loan,
Using TVM Calculation,
N = [PV = 20,000,000, FV = 0, PMT = -290,000, I = 0.07/12]
N = 88.49 months
Time Period = 88.49 months
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