question archive (Annuity number of periods) Alex Karev has taken out a $210,000 loan with an annual rate of 12 percent compounded monthly to pay off hospital bills from his wife Izzy's illness if the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How Jong will it take for him to pay off the loan it he can pay $4,000 per month? Use five decimal places for the monthly percentage rate in your calculations a
(Annuity number of periods) Alex Karev has taken out a $210,000 loan with an annual rate of 12 percent compounded monthly to pay off hospital bills from his wife Izzy's illness if the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How Jong will it take for him to pay off the loan it he can pay $4,000 per month? Use five decimal places for the monthly percentage rate in your calculations a
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(Annuity number of periods) Alex Karev has taken out a $210,000 loan with an annual rate of 12 percent compounded monthly to pay off hospital bills from his wife Izzy's illness if the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How Jong will it take for him to pay off the loan it he can pay $4,000 per month? Use five decimal places for the monthly percentage rate in your calculations a. It Alex can pay $3,500 per month, the number of years it takes for him to pay off the loan is years (Round to one decimal place)
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Answer:
A) Using financial calculator to calculate the number of years to pay off the loan
Inputs: I/y= 12% / 12 = 1%
Pv= -210,000
Pmt= 3,500
Fv= 0
N= compute
We get, number of years as 92.09 ÷ 12 = 7.7 years
B) Using financial calculator to calculate the number of years to pay off the loan
Inputs: I/y= 12% / 12 = 1%
Pv= -210,000
Pmt= 4,000
Fv= 0
N= compute
We get, number of years as 74.82 ÷ 12 = 6.2 years
