How long will you be paying back a $20000 loan at 10% fixed rate interest compounded monthly if you pay $500 per month?

Add your answer...

1 Answer

To perform this calculation, leave Payment Periods empty, set Interest Rate to 10, Present Value to 20000, Periodic Payment is -500, and set Future Value is 0 (you do not want to owe anything at the end of the loan). Compounding is Monthly, Payments are Monthly, assume End of Period Payments, and Discrete Compounding. Now, click on the Calculate button next to the Payment Periods area, you should calculate 48. Answer: You will pay off the loan in 4 years (48 months). more
Thanks for your feedback!

Related Videos

Not the answer you're looking for? Try asking your own question.

Related Experts

Nathan Click
Loans expert
Ellie Matama
Loans expert