One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $690 per month. You will charge 1.09 percent per month interest on the overdue balance. If the current balance is $14,910, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $690 per month. You will charge 1.09 percent per month interest on the overdue balance. If the current balance is $14,910, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $690 per month. You will charge 1.09 percent per month interest on the overdue balance. |
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If the current balance is $14,910, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Expert Solution
Introduction
In mortgage loan the monthly payment are amortized over the loan period. The monthly payment here can be determined using the ordinary annuity formula.
Here,
Monthly payment "PMT" = $690
Current accounts payable balance "PV" = $14910
Monthly rate f interest "r"= 1.09%
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