Question

You just received a loan offer from friendly loans. the company is offering you $5,000 at 9.3 percent interest. the monthly payment is only $100. if you accept this offer, how long will it take you to pay off the loan? 5.84 years 5.29 years 6.80 years 6.33 years 7.59 years

Answer 1

EMI= (P*R*(1+R)^N)/((1+R)N-1)

P= Loan amount= 5000Rate=9.3%= 9.3/12 = .775%  = .00775Time= xEMI= 100 EMI= (P*R*(1+R)^N)/((1+R)N-1)100 = 5000*.00775(1.00775)x / 1.00775x-1N= 63.5 months= 5.29 years