Question
Youve borrowed $5,640.60 and agreed to pay back the loan with monthly payments of $240. Assume the interest rate is 15% stated as an APR.
| Youve borrowed $5,640.60 and agreed to pay back the loan with monthly payments of $240. Assume the interest rate is 15% stated as an APR. |
| a. | How long will it take you to pay back the loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.) |
| Number of months |
| b. | What is the effective annual rate on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
| Effective annual rate | % |
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
