Question

​(Annuity number of​ periods)  How long will it take to pay off a loan of ​$54,000 at an annual rate of 11 percent compounded monthly if you make monthly payments of $500​?

Use five decimal places for the monthly percentage rate in your calculations.

The number of years it takes to pay off the loan is ___ years.  ​(Round to one decimal​ place.)

Answer 1

Ans 42.0 years

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n
500 =	(11%/12)*54000
	1 - (1 / (1 + 11%/12)^n))
500 =	495
	1 - (1 / (1 + 11%/12)^n))
n =	504 months
n =	42.0 years