Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 8 (Loan Payments, 7 points total). Suppose you have a loan with outstanding balance of $15,000 and APR 12%. You can afford $500 monthly
Problem 8 (Loan Payments, 7 points total). Suppose you have a loan with outstanding balance of $15,000 and APR 12%. You can afford $500 monthly payments and one final additional (lump sum) payment of $1000 to liquidate the loan at the end of the loan's life. How many MONTHS will it take you to pay off the loan? (Note: m=12.) Write down your calculator entries for I/Y, PMT, PV, and FV, and your answer from CPT N. You will record your answers in three parts to this problem. Part A (Here). Please indicate your calculator entry for I/Y and PMT. Please indicate I/Y as xx.x (to one decimal, recorded as percentage points per the calculator, e.g., 5.0 for 5%) and PMT exactly as entered in the calculator, e.g., 1,000 for positive 1,000 dollars (no $ signs, with comma as needed, no decimal point, round up to nearest dollar), -1,000 for negative one thousand dollars. Be sure to enter a negative (-) for a cash outflow and a positive (without a + or -) for money you receive (e.g., loan proceeds)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started