Answer:
The answer is approx 75 months.
Step-by-step explanation:
We have P = 3000
r = 14%
Monthly payment = $60
We will use the formula :
[tex][(0.14/12) \times3000] / [1- (1+(0.14/12)^{-12n}][/tex]
Solving this we get n = approx 75 months. After 75 months few dollars will be left. And in the 76th month the balance will become negative.
For easy and better understanding, I have attached an excel sheet.
The answer is approx 75 months.
