One of your customers has just made a purchase in the amount of $12,000. You have agreed to payments of $290 per month and will charge a monthly interest rate of 0.84 percent. How many months will it take for the account to be paid off?

It will take 51 months.

Explanation:

As we know the constant payment of $290 monthly is the annuity payment to pay $12,000 with interest rate of 0.84% per  month. The Number of Months can be calculated by following formula.

Loan amount = PV = $12,000

Rate of interest = r = 0.84 %

Monthly Payment = P = $290

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

$12,000 = $290 x [ ( 1 - ( 1 + 0.84% )^-n / 0.84% ]

$12000 x 0.84% / $290 = 1 - ( 1 + 0.84% )^-n

0.347586 = 1 - ( 1 + 0.84% )^-n

0.347586 - 1 = - ( 1 + 0.84% )^-n

-0.652414 = - ( 1 + 0.84% )^-n

1 / 0.652414 = 1.0084^n

1.532769 = 1.0084^n

Log 1.532769 = n x log 1.0084

n = Log 1.532769 / log 1.0084

n = 51

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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