The time taken to settle a debt of $705, repaid in monthly instalments of $25 at the end of each month, with interest rate of 15% compounded monthly.

Lewis Harvey 2021-08-15 Answered
The time taken to settle a debt of $705, repaid in monthly instalments of $25 at the end of each month, with interest rate of 15% compounded monthly.
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au4gsf
Answered 2021-08-16 Author has 95 answers
Monthly interest rate =Annual interestNo. of months
=15%12
=1.25%
The no. of months taken to repay the debt may be calculated as follows:
P=A(PA,1.25%,n)
705=25(PA,1.25%,n)
28.2=(PA,1.25%,n)
Looking at the 1.25% interest table we infer that n=35 months.
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