ne 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. If the current balance is $14,880, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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
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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.

If the current balance is $14,880, how long will it take for the account to be paid off? (Do
not round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)

Expert Solution
Step 1

Current balances to be paid off  equal payments that carry the interest and principal that are to be paid off over period of time.

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