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

Question

Blaise

Business

29 January, 20:47

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

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Answers (1)

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Patricia Wade · Answer 1

27.14 months

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