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You have borrowed $24,000 and agreed to pay back the loan with monthly payments of $200....

You have borrowed $24,000 and agreed to pay back the loan with monthly payments of $200. If the interest rate is 12%,how long will it take you to pay back the loan?

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Homework Answers

Answer #1

Loan amount(Present value) = $24,000

Monthly Loan Payment = $200

Monthly Interest Rate = APR/12 = 12%/12 = 1%

Calculating the No of months it will take to pay off the loan:-

No of months = 79.24

No of years = 6.6033 years

So, it will take 79.24 months or 6.6033 years to pay off the loan.

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