Ask Question
12 September, 23:30

You currently owe $20,000 on a car loan at 8.25 percent interest. If you make monthly payments of $596.59 per month, how long (i. e., number of months rounded to one decimal place) will it take you to fully repay the loan

+1
Answers (1)
  1. 12 September, 23:36
    0
    The answer is: 36.2 months

    Explanation:

    First, let us calculate the total amount to be repaid after interest has been added.

    interest = 8.25% = 0.0825

    interest in amount = 0.0825 * 20,000 = $1,650

    Total amount to be repaid = Original amount + interest

    = 20,000 + 1,650 = $21,650

    Next, we are told that the repayment is made monthly at $596.59 per month, therefore number of months required to pay $21,650;

    $596.59 = 1 month

    ∴ $21,650 = 21,650 : 596.59 = 36.28 = 36.3 months (to one decimal place)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You currently owe $20,000 on a car loan at 8.25 percent interest. If you make monthly payments of $596.59 per month, how long (i. e., ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers