Problem 6-21 Calculating Number of Periods [LO3] One of your customers is delinq
ID: 2612206 • Letter: P
Question
Problem 6-21 Calculating Number of Periods [LO3]
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 1.3 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.)
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 1.3 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
Months for account to be paid off = nper(rate,pmt,pv,fv)
Months for account to be paid off = nper(1.3%,500,-12000,0)
Months for account to be paid off = 28.95
Answer
28.95