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Lana’s car needs major work done to it that will cost of $2240. She has a line of credit

that she can use to pay for this. The line of credit has an interest rate of 9.8%

compounded weekly. If Lana makes monthly payments of $80, how long will it take her

to pay off the line of credit?

 Jan 28, 2022
 #1
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You must convert the interest rate of 9.8% from weekly compound to monthly compound.

 

9.8% compounded weekly==9.83082720035% compounded monthly

 

PV=2240; FV=0; PMT=80;R=0.0983082720035/12; N=Log((PMT-FV*R) /(PMT-R*PV)) / Log(R+1)

 

N==31.94 ==~32 months to pay off her line of credit loan.

 Jan 28, 2022
 #2
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thanks!!

Timothy16  Jan 28, 2022

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