SOLUTION: A consumer buys a used car for $17600 with monthly payments of $260, an annual interest rate of 4.2%. Find the number of payments.

Question 1148367: A consumer buys a used car for $17600 with monthly payments of $260, an annual interest rate of 4.2%.
Find the number of payments.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
using the financial calclator at https://arachnoid.com/finance/, i get the following:

inputs are:
present value = 17600
future value = 0
payment at the end of each month = -$260.
monthly interest rate percent = 4.2% / 12 = .35%

click on NP and the calculator tells me that the number of months is 77.39.
that would be 77 months of $260 payment each plus a residual paid by the end of the 78th month.
i would therefore have to say 78 months is required.
in real life, they might just add that amount to the amount owed by the end of the 77th month, but that would be an assumption that isn't supported by the data.

here are the results from the use of the online calculator.

$$$

here are the results from the use of excel.

$$$

the excel results show that $101.48 is still owed at the end of the 77th month and is payed off by the end of the 78th month.

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