## PrettyGirl22 2 years ago Your company will make quarterly payments of \$12,500 on a \$250,000 piece of equipment at 8.25% interest. How many years will it take to pay off the loan?

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1. YungPolo87434

idk i need the answer to this problem x<7;7

2. YungPolo87434

what is it

3. PrettyGirl22

what does the question ask you

4. YungPolo87434

\[x <7;7\]

5. PrettyGirl22

i need more details

6. YungPolo87434

tell whether the number in bold solution

7. YungPolo87434

for each inequality,tell whether the number in bold is a solution

8. YungPolo87434

hello

9. PrettyGirl22

i'm not sure go on yahoo and ask

10. agent0smith

I'm assuming the 8.25% interest is compounded yearly...? My initial calculations suggest that the company will never pay off the loan... maybe I've done something wrong.

11. PrettyGirl22

its quarterly payments

12. agent0smith

Yeah, but the 8.25% interest rate, it doesn't say if it's compounded yearly or what. The payments are quarterly, maybe the interest is too? idk, it should tell you.

13. PrettyGirl22

nope thats all the information

14. agent0smith

Have you studied compound interest yet? Maybe it's just simple interest

15. agent0smith

Simple interest makes it way easier to solve

16. agent0smith

And as far as I can tell, using compound interest... the company won't EVER pay off the loan.

17. PrettyGirl22

they will its a problem in excel

18. PrettyGirl22

You want to buy a new motorcycle. The payments will be \$244.22 per month for 8 years. The interest rate is 7.35%. What is the asking price of the motorcycle? here is a problem similar

19. agent0smith

Have you studied compound interest? There's a big difference between that and simple interest for these problems.

20. agent0smith

I'm guessing they're simple interest problems

21. PrettyGirl22

yeah but this is for a computer science class

22. agent0smith

Oh, I'm not familiar with computer science, so it looks like I was going at it the wrong way. I looked it up and don't recognize the formulas. This should help, it looks like the same problem as yours: http://answers.yahoo.com/question/index?qid=20121210132233AAtJBAz

23. agent0smith

this looks like it may have the formula you need: http://www.cimaglobal.com/Thought-leadership/Newsletters/Insight-e-magazine/Insight-2011/Insight-January-2011/Spreadsheet-skills-a-debt-to-repay/