Solved

Solve the Problem n=log(1Ar12P)log(1+r12)n = - \frac { \log \left( 1 - \frac { A r } { 12 P } \right) } { \log \left( 1 + \frac { r } { 12 } \right) }

Question 148

Multiple Choice

Solve the problem.
-The number n of monthly payments of P dollars each required to pay off a loan of A dollars in its entirety at interest rate r is given by n=log(1Ar12P) log(1+r12) n = - \frac { \log \left( 1 - \frac { A r } { 12 P } \right) } { \log \left( 1 + \frac { r } { 12 } \right) } A college student wants to buy a car and realizes that he can only afford payments of $180 per month. If he
Borrows $5,000 at 6% interest and pays it off, how many months will it take him to retire the loan?
Round to the nearest month.


A) 30 months
B) 28 months
C) 29 months
D) 31 months

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents