Answer:
The number of payments Kendra will have to make = 17.33 to pay off the loan completely within 18 months.
Explanation:
Paying $ 46.50 monthly, a financial calculator says it will take 18 months to pay off the loan which can also be calculated manually as follows:
= $63 + $750
= 18 months.
Amortization formula for “ n” the no of payments she will have to make is:
here, P = principal value of loan $750
i = monthly interest rate 0.007
A = monthly payment 46.50
Substituting values in formula
The number of payments Kendra will have to make is 17.33 to pay off the loan completely within 18 months.