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One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month. You will charge 1.8 percent per month interest on the overdue balance. If the current balance is $18,000, 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 $500 per month. You will charge 1.8 percent per month interest on the overdue balance. If the current balance is $18,000, how long will it take for the account to be paid off?

Essentials Of Investments
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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One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month. You will charge 1.8 percent per month interest on the overdue balance. If the current balance is $18,000, how long will it take for the account to be paid off? 2 3 4 Input area: LO 5 6 Monthly payment 7 Rate per month 8 Current balance 9 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 14 Months until paid off 15 $500 1.80% $18,000
Transcribed Image Text:One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month. You will charge 1.8 percent per month interest on the overdue balance. If the current balance is $18,000, how long will it take for the account to be paid off? 2 3 4 Input area: LO 5 6 Monthly payment 7 Rate per month 8 Current balance 9 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 14 Months until paid off 15 $500 1.80% $18,000
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