Question

One of your customers is delinquent on his accounts payable balance. you've mutually agreed to a repayment schedule of $630 per month. you will charge 1.03 percent per month interest on the overdue balance. if the current balance is $14,850, how long will it take for the account to be paid off? (do not round intermediate calculations and round your answer to 2 decimal places,

e.g., 32.16.) number of months

Answer 1

27.14 months

Step-by-step explanation:

to calculate how long it will take to pay the loan, we can use an excel spreadsheet and the NPER function:

=NPER(rate,payment,-loan)

• payment = 630
• rate = 1.03
• loan balance = 14,850

=NPER(1.03%,630,14850) = 27.14 months