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klasskru [66]
2 years ago
12

You’re prepared to make monthly payments of $175, beginning at the end of this month, into an account that pays 7 percent intere

st compounded monthly. How many payments will you have made when your account balance reaches $15,000?
Business
1 answer:
lara31 [8.8K]2 years ago
3 0

Answer:

<u>86 payments approximately</u>

<em>Explanation</em>:

<u>First</u>;

Find the monthly average interest rate,

=7%/12

=0.0058333333

<u>Second</u>;

Add the monthly average interest rate to the monthly payment

= $175 + 0.0058333333

= $175.00583333 (average total monthly balance)

<u>Third</u>;

Divide final account balance by the average total monthly balance

= 15,000 / 175.00583333

=85.71 payments.

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