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quester [9]
3 years ago
15

Beulah took out a loan for $1225 at an 11.4% APR, compounded monthly, to buuy a foosball table. If she will make monthly payment

s of $101.75 to pay off tghe loan, how many total payments will she have to make?
Mathematics
2 answers:
hram777 [196]3 years ago
6 0

Answer:

13

Step-by-step explanation:

APEX

omeli [17]3 years ago
3 0
Beulah should make 13 (rounded off) payments of $101.75 for her loan amounting to $1372.18 after a year.

To answer this problem, get first the Future Value (FV) of the loan for a year. Given the APR and the amount of loan, FV is computed as follows: FV = $1225 x (1+.0095)¹² = $1372.18
Note that the APR and period were changed to 0.95% and 12, respectively because it has to be compounded monthly.  

Now, divide the FV by the monthly payment of $101.75.
Number of payments = $1372.18/$101.75 = 13.48 ≈ 13

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