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Giovanni took out a loan for $3900 at 14% interest, compounded annually. If he makes yearly payments of $540, will he ever pay off the loan?
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2 votes
Giovanni took out a loan for $3900 at 14% interest, compounded annually. If he makes yearly payments of $540, will he ever pay off the loan?

User Kenneth Rory Dunn
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2 Answers

2 votes
In about 40 years he can have it payed off
User Arij SEDIRI
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5 votes
No, because $540 is less than the amount of interest he is charged per year Hope this helps
User Atomman
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8.8k points
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