Answer:
<u>99.89 months</u> or <u>8.32 years</u>
Explanation:
This is an annuity problem. The formula is:
Where
P is the payment total need to be made
C is the periodic payment per period
r is the rate of interest
n is the time period
Given in the problem, you need to pay off 1032, so
P = 1032
Periodic payment of 20 per month, so
C = 20
Rate of interest 1.5% = 0.015, so
r = 0.015
Time (n) is what we want to find.
Substituting and using logs, we solve for t:
It will require <u>99.89 months!</u>
In years, that would be:
99.89/12 = <u>8.32 years!</u>