question archive Todd's car loan balance is $6,470
Todd's car loan balance is $6,470
Subject:FinancePrice:2.86 Bought11
Todd's car loan balance is $6,470.90. His monthly payment is $328 and the interest rate is 6.9%. How many payments does Todd have left? (Hint: Solve for N.)
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PV = 6,470.9
r = 6.9 / 12 = 0.575%
P = 328
PV = P x [1 - (1 + r)-n] / r
6,470.9 = 328 x [1 - (1 + 0.00575)-n] / 0.00575
1- 1.00575-n = 0.11344
1.00575-n = 0.88656
1.00575n = 1.12795
n x ln(1.00575) = ln(1.12795)
n = 21 months
