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 1.30 percent per month interest on the overdue balance.

If the current balance is $12,000, 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.)

  Months for account to be paid off

months

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 1.30 percent per month interest on the overdue balance.

If the current balance is $12,000, 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 NPER function in excel we can find out the time to be required to pay the balance payment

=NPER(1.3%,-500,12000,0,0) = 28.95 months

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

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