Question

mirram and dave want to borrow 25000 to put an addition on thier house. They went over the buget and can afford to pay 450 a month. if the bank offers them a home improvment loan with an arp of 6.3% what should the length of the loan be so they can afford thier monthly payment

Answer 1

Use the same formula that we used previously.
Check for different periods of n (= number of months).
Start with 10 years (120 payments), and if the monthly payment is too small, try 5. If the payment is too much, extend the period.
The answer is within 10 years.