Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Overnight Trucking recently purchased a new truck costing $150,800. The firm financed this purchase at 8.6 percent interest with monthly payments of $2,100. How many

Overnight Trucking recently purchased a new truck costing $150,800. The firm financed this purchase at 8.6 percent interest with monthly payments of $2,100. How many years will it take the firm to pay off this debt? A. 7.04 years B. 7.22 years C. 8.10 years D. 8.23 years E. 8.44 years

I want to use my financial calculator to solve this, but for some reason I am not getting the right answer.

I did 8.6%/12 = .00717= I/y

PV= -150800

PMT=2100

Fv=0

I get N= 71.997

I think I'm messing up on the rate. How do I do this in the financial calculator correctly?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Equity Valuation And Portfolio Management

Authors: Frank J. Fabozzi, Harry M. Markowitz

1st Edition

047092991X, 9780470929919

More Books

Students also viewed these Finance questions

Question

Understand employee mentoring

Answered: 1 week ago

Question

Appreciate the importance of new-employee orientation

Answered: 1 week ago