Lush Gardens Co. bought a new truck for $50,000. It paid $5,500 of this amount as a down payment and financed the balance at 4.16% compounded semi-annually. If the company makes payments of $2,000 at the end of every month, how long will it take to settle the loan?
Lush Gardens Co. bought a new truck for $50,000. It paid $5,500 of this amount as a down payment and financed the balance at 4.16% compounded semi-annually. If the company makes payments of $2,000 at the end of every month, how long will it take to settle the loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Lush Gardens Co. bought a new truck for $50,000. It paid $5,500 of this amount as a
down payment and financed the balance at 4.16% compounded semi-annually. If the
company makes payments of $2,000 at the end of every month, how long will it take to
settle the loan?
years
months
Express the answer in years and months, rounded to the next payment period
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