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?

Question

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?

anonymous · Answer

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

anonymous · Answer

what is it

anonymous · Answer

what does the question ask you

anonymous · Answer

$$x <7;7$$

anonymous · Answer

i need more details

anonymous · Answer

tell whether the number  in bold solution

anonymous · Answer

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

anonymous · Answer

hello

anonymous · Answer

i'm not sure go on yahoo and ask

agent0smith · Answer

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.

anonymous · Answer

its quarterly payments

agent0smith · Answer

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.

anonymous · Answer

nope thats all the information

agent0smith · Answer

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

agent0smith · Answer

Simple interest makes it way easier to solve

agent0smith · Answer

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

anonymous · Answer

they will its a problem in excel

anonymous · Answer

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

agent0smith · Answer

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

agent0smith · Answer

I'm guessing they're simple interest problems

anonymous · Answer

yeah but this is for a computer science class

agent0smith · Answer

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

agent0smith · Answer

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/