Answer:
The answer is: 36.2 months
Explanation:
First, let us calculate the total amount to be repaid after interest has been added.
interest = 8.25% = 0.0825
interest in amount = 0.0825 × 20,000 = $1,650
Total amount to be repaid = Original amount + interest
= 20,000 + 1,650 = $21,650
Next, we are told that the repayment is made monthly at $596.59 per month, therefore number of months required to pay $21,650;
$596.59 = 1 month
∴ $21,650 = 21,650 ÷ 596.59 = 36.28 = 36.3 months ( to one decimal place)
