SOLUTION: I owe a court settlement of $46,000 @ 6% interest and I pay $500.00 a month. How many months is this going to take. If I were to offer a lump sum now, would would the present va

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: I owe a court settlement of $46,000 @ 6% interest and I pay $500.00 a month. How many months is this going to take. If I were to offer a lump sum now, would would the present va      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 337274: I owe a court settlement of $46,000 @ 6% interest and I pay $500.00 a month. How many months is this going to take.
If I were to offer a lump sum now, would would the present value be, and/or a structured Settlement be?
Thanks
Dawn Swanson
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
I owe a court settlement of $46,000 @ 6% interest and I pay $500.00 a month. How many months is this going to take.
:
To pay off a $46,000 loan at 6% will take about 124 month or 10 yr and 4 months.
:
If I were to offer a lump sum now, would would the present value be, and/or a structured Settlement be?
:
During this time you would pay $16,000 in interest (above the principal of $46,000)
:
I assume that you are charged interest on the unpaid balance, therefore paying it off right away would save you as much as $16,000
:
As to a structured settlement, that is negotiated, like perhaps they would except $40,000 if you paid it right now for example. Be sure get it all in writing if you do that.