Kenny D.

asked • 03/20/15

Compound Interest on Loan Payments

If you owe $48,000 on a loan which charges an annual interest rate of 12% compounded monthly, and you can afford to pay $689 per month toward your loan, it takes 10 years to pay off your loan. If you still can afford to pay $689 per month towards your loan, and you owe $24,000 instead of $48,000, how long will it take to pay off your debt?

1 Expert Answer

By:

Kenny D.

I'm trying to plug in the numbers but I'm not getting vn=.65155
I keep getting a negative number for it.
I know I have to be doing something wrong.
Report

03/21/15

Robert L.

tutor
Are you subtracting .65155 from 1? Also, the ln's of values less than 1 are negative butboth sides cancel out.
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03/22/15

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