How long will it take for the account to be paid off

Assignment Help Financial Management

Reference no: EM131043508

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $660 per month. You will charge 1.06 percent per month interest on the overdue balance. Required: If the current balance is $14,880, how long will it take for the account to be paid off? (Do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Number of months

Reference no: EM131043508

Questions Cloud

What is the future value at an interest rate : Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 970 2 1,200 3 1,420 4 2,160 Requirement 1: If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? What is the fut..

What is the future value of these cash flows in year : Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 970 2 1,200 3 1,420 4 2,160 Requirement 1: If the discount rate is 7 percent, what is the future value of these cash flows in Year 4?

What is the EAR on this loan : You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 37-year mortgage loan for 85 percent of the $3,270,000 purchase price. The monthly payment on this loan will be $16,000. Requirement 1: What is the APR on this lo..

Expense needs over the next four years : Beginning three months from now, you want to be able to withdraw $4,000 each quarter from your bank account to cover college expenses over the next four years. Required: If the account pays .8 percent interest per quarter, how much do you need to hav..

How long will it take for the account to be paid off : One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $660 per month. You will charge 1.06 percent per month interest on the overdue balance. Required: If the current balance is $14,880..

What will your monthly payment be : You want to buy a new sports car from Muscle Motors for $30,800. The contract is in the form of a 36-month annuity due at an APR of 5.85 percent. Required: What will your monthly payment be?

Effective annual return on its consumer loans : Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 15.5 percent per year. The bank uses daily compounding on its loans. Required: What interest rate is the bank required by law to report to potential borrowers?

Match first simple bank over an investment horizon : First Simple Bank pays 9.8 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. Required: What rate should the bank set if it wants to match First Simple Bank over an investment hor..

Effective annual return-return on this investment vehicle : Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $2,800 monthly. The contract currently sells for $328,000. Requirement 1: What is the monthly return on this investment vehicle? What is the APR? What is the effective annu..

User Account

All Pages