How long will it take you to fully repay the loan

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Reference no: EM131868141

Please answer BOTH of the following questions and show me how you got to the answer:

1. You currently owe $26,000 on a car loan at 4.25 percent interest. If you make monthly payments of $596.59 per month, how long (i.e., number of months rounded to one decimal place) will it take you to fully repay the loan? Please round to the nearest tenth (one decimal) place.

2. You have a $25,000 balance on your credit card. You plan to make monthly payments of $450 until the balance is paid off. The interest rate on your credit card is 17.5% p.a., compounded monthly. A letter in the mail informs you that you are approved for a new credit card and balance transfers are subject to a 9.5% p.a., compounded monthly. How many months sooner will you pay off your bill?

Reference no: EM131868141

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