Homework Sourseyou just received loan offer from friendly loans the company
you just received loan offer from friendly loans the company is offering a 5000 at 12.2% interest your monthly payment is only $100 if you except this offer how long will it take you to pay off the loan
you just received loan offer from friendly loans the company is offering a 5000 at 12.2% interest your monthly payment is only $100 if you except this offer how long will it take you to pay off the loan
you just received loan offer from friendly loans the company is offering a 5000 at 12.2% interest your monthly payment is only $100 if you except this offer how long will it take you to pay off the loan
Solution
In this case we use the formula
Loan EMI or payment= r(P)/1-(1+r)^-n
Loan EMI is $ 100
Here r is rate of interest=12.2% annually (assuming) in this case
P is principal or actual loan amount or present outstanding
n if the number of periods of loan repayment.
Inserting all these valuse in the given formula number of repayments= 71 months or 5.9 years.
