Answer:
It will take me = 30.99 years to pay-off the borrowed amount paying $60.00 every month
Explanation:
SOLUTION:
Using the Formula: A = P(1+r/n)[tex]{nt}[/tex]
Where:
A= $60.00;
P = $3,200.00;
r = 12.9%;
n = 12
t =?
Substituting the values into the Formula =
$60 = $3,200(1 + 12.9%/12)[tex]{12t}[/tex]
= $60 = $3,200(1 + 12.9%/12)[tex]{12t}[/tex]
= $60.00 = $3,200.00 (1 + 0.129/12)[tex]{12t}[/tex]
= $60.00 = $3,200.00 (1 + 0.01075 )[tex]{12t}[/tex]
= $60.00 = $3,200.00 (1.01075 )[tex]{12t}[/tex]
= $60.00/$3,200.00 = $3,200.00 (1.01075 )[tex]{12t}[/tex]/$3200.00
= 0.01875 = (1.01075)[tex]12t[/tex]
= Using the law of logarithm
= log[tex]A^{N}[/tex] = Nlog A
=12tlog(1.01075) = log0.01875
= 12log(1.01075)/(1.01075) = log0.01875/log(1.01075)
= 12t = log(0.01875)/log1.01075
= 12t = 1.7270/0.04644
Divide 12 by both sides
=12t/12 = 371.88774/12
t= 30.9898
∴ 30.99 years
It will take me = 30.99 years to pay-off the borrowed amount paying $60.00 every month
