Question

One of your customers has just made a purchase in the amount of $23,200. You have agreed to payments of $445 per month and will charge a monthly interest rate of 1.26 percent. How many months will it take for the account to be paid off?

Answer 1

Answer:

85.43 months

Explanation:

Purchase = $23,200

Payment per month = $445

Interest rate = 1.26%

Therefore the solution is:

$23,200 = $445[(1 − 1/1.0126^t) / .0126]

t = 85.43 months