Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan payments. 22. What should be the length of her loan? Round to the nearest tenth of a year. a. 5.5 years b. 5.6 years c. 5.7 years d. 5.8 years 23. How would an increase of $20 to her monthly payment affect the length of her loan? a. 0.9 years more b. 0.9 years less c. 0.8 years less d. 0.8 years more

Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan payments. 22. What should be the length of her loan? Round to the nearest tenth of a year. a. 5.5 years b. 5.6 years c. 5.7 years d. 5.8 years 23. How would an increase of $20 to her monthly payment affect the length of her loan? a. 0.9 years more b. 0.9 years less c. 0.8 years less d. 0.8 years more

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan payments.

22. What should be the length of her loan? Round to the nearest tenth of a year.
a. 5.5 years
b. 5.6 years
c. 5.7 years
d. 5.8 years

23. How would an increase of $20 to her monthly payment affect the length of her loan?
a. 0.9 years more
b. 0.9 years less
c. 0.8 years less
d. 0.8 years more

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