Answer:
It will take 50 months to complete the payment on his entire balance
Explanation:
We have to solve for n in an annuity:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C $20.00
time n
rate (0.1524 / 12 months per year) 0.00127
PV $969.1600
[tex]20 \times \frac{1-(1+0.00127)^{-n} }{0.00127} = 969.16\\[/tex]
[tex](1+0.00127)^{-n}= 1-\frac{969.16\times0.00127}{20}[/tex]
[tex](1+0.00127)^{-n}= 0.93845834 [/tex]
Now, we use logarithmics properties to get the answer:
[tex]-n= \frac{log0.93845834}{log(1+0.00127)
n = 50.044991
