One of your customers is delinquent on his accounts payable balance. You’ve mutu

Question

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.25 percent per month interest on the overdue balance.

If the current balance is $11,500, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.25 percent per month interest on the overdue balance.

If the current balance is $11,500, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

using the NPER function in MS EXCELyou can find out the time required to pay off the payable

=NPER(1.25%,-500,11500,0,0)= 27.28 months = 27 months approx.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.