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
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> 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
Log On
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
☺☺☺☺
