Today, you signed loan papers agreeing to borrow $4,954.85 at 9% compounded monthly. The loan payment is $143.84 a month. How many loan payments must you make before the loan is paid in
Full?

Question

Quizplus · Accepted Answer

The correct answer is D.The number of loan payments can be calculated using the formula:N = -(log(1 - (r * P) / PMT) / log(1 + r))where:N is the number of loan paymentsr is the monthly interest rate (9% / 12 = 0.0075)P is the principal amount ($4,954.85)PMT is the monthly payment ($143.84)Plugging in the values, we get:N = -(log(1 - (0.0075 * 4954.85) / 143.84) / log(1 + 0.0075))N = 36.00Therefore, the number of loan payments required to pay off the loan in full is 36.

Today, You Signed Loan Papers Agreeing to Borrow $4,954