Question 403001: How long will it take to pay off a loan of $50,000 at an annual rate of 10% compounded monthly if you make payment of $600?
Answer by solver91311(24713)   (Show Source):
You can put this solution on YOUR website!
Use Excel.
=NPER(0.10/12,-600,50000,0,0)
if you make your first payment at the end of the first month and each subsequent payment at the end of the next month.
=NPER(0.10/12,-600,50000,0,1)
if you make your first payment at the beginning of the first month and each subsequent payment at the beginning of the next month.
The second way is a little quicker, but both are nearly 12 years.
John
My calculator said it, I believe it, that settles it
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