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You've just bought a new​ flat-screen TV for $3,000 and the store you bought it from...

You've just bought a new​ flat-screen TV for $3,000 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 12 percent compounded monthly. If you take the financing and make monthly payments of $100​, how long will it take to pay off the​ loan? How much will you pay in interest over the life of the​ loan?

a. The number of years it will take to pay off the loan is

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Answer #1

Ans:- we will use the NPER function of excel to find the number of years it will take to pay off the loan.

Rate=12%/12, Pmt=$100, PV=-$3000, FV=0

Total Interest paid over the life the entire life of the loan is calculated by Total Payment done - Loan amount

Total Payment done =Monthly payment * Number of payments done.

Note:- If this answer helps you pls give thumbs up.

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