Answer:
3.75 years.
Explanation:
So, we are given the following data or parameters in the question above as:
=> The amount the company is offering = $8,000 at 6.25 percent interest.
=> ". The monthly payment is only $200. "
Therefore, rate = rate per period = 0.00520833333333333 + from 0.0625/12).
The Number of payment period = N = 45.0.
N(6.25 %/12,200, - 8000.
45/12 = 3.75 years.
Hence, it will take a period of 3.75 years for me to pay up the loan.
