Question

While Mary Corens was a student at the University of Tennessee, she borrowed $8,000 in student loans at an annual interest rate of 9%. If Mary repays $1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.

Answer 1

6.93 years

Step-by-step explanation:

For computing the number of years we use the NPER formula i.e to be shown in the attachment

Given that

Present value = $8,000

Future value = $0

Rate of interest = 9%

PMT = $1,600

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 6.93 years