Question

A veterinarian would like to upgrade the computer system for the office. The cost is $25,000, and the interest rate is 3.5%. The amount of interest to be paid is $5,250. How many months is the loan for?

Answer 1

use the formula t = (1/r)(A/P - 1) to find time

r = 3.5% = 0.035

A = 25,000 + 5,250 = 30,250

P = 25,000

(1/0.035)(30250/25000-1)

(1/0.035)*0.21 = 6 years

6*12 = 72 months