Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $10,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number. year(s)
Repaying a Loan
While Mary Corens was a student at the University of Tennessee, she borrowed $10,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
year(s)
A sum borrowed to meet any personal or business need is regarded as a loan. The loan is generally repaid through a series of payments made at each interval. The periodic payments made to repay the loan amount can be regarded as annuity payments. The annuity alternatively is a series of payments made either as a deposit or to repay any loan. The current worth of all the future cash flow payments reveals an annuity's present value. In the case of a loan, the annuity's present value is equivalent to the loan amount.
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