A pottery factory purchases a continuous belt conveyor kiln for $50,000. A 6.5% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $501, over what term is this loan being paid?
Select one:
1. 10 years
2. 11 years
3. 12 years
4. 13 years
Next
Formula to use: periods, or
------- Substituting 501 for M (end-of-month payment), 50,000 for P, and .065 for r
--------- Cross-multiplying
-------- Dividing by – 230.16667
---- Converting to LOGARITHMIC form
------------- Applying change of base
n, or number of months/periods = 143.9828
Number of years = , or 11.99857 ≈ (CHOICE 3)