SOLUTION: Sollozo just made a single payment to repay a loan he had with the Corleone Finance Company. He paid a total of $86,500 which included interest of $56,500 at 48% compounded monthly

Question 1104685: Sollozo just made a single payment to repay a loan he had with the Corleone Finance Company. He paid a total of $86,500 which included interest of $56,500 at 48% compounded monthly. How long ago was the money borrowed?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
86500-56500=30000 as the original loan. So:
56500=30000(1+.04)^m where m equals the amount of months. So:
1.88333333333333=1.04^m
ln 1.88333333333333=ln 1.04^m=m ln 1.04
m=16.14 months as the age of the loan
☺☺☺☺
RELATED QUESTIONS
1. Cris Adolfo borrowed Php80,000 at 10.4 % simple interest for 130 days. On day 40, July (answered by CPhill)

A business owner spent $32,000 to upgrade her business showroom she paid 15% as a down... (answered by Theo)

Cris Adolfo borrowed php 80000 at 10.4% simple interest for 130 days. On day 40, July 3,... (answered by ikleyn)

Tamora just made the last of her monthly payments on her loan. She had been making these... (answered by Theo)

Jane Windsor financed a $5,900 ski boat with a 12% add-on interest installment loan for... (answered by Theo)

Mr. Obama borrows money at 6% compound monthly . Two years later, he pays off the loan... (answered by stanbon)

A man borrowed $15,000 three years ago. The terms of loan are 10% interest for 10 years... (answered by Theo)

C. A university graduate bought a new car. The cash price is $19,000; he made a $ 1,400... (answered by solver91311)

Noah bought a new car costing $25,350. He made a. 20% down payment on the car and... (answered by addingup)