Ask Question
3 December, 11:28

One of your customers is delinquent on his accounts payable balance. you've mutually agreed to a repayment schedule of $500 per month. you will charge 1.40 percent per month interest on the overdue balance. if the current balance is $13,000, how long will it take for the account to be paid off?

+1
Answers (2)
  1. 3 December, 12:31
    0
    2.71 years.
  2. 3 December, 14:34
    0
    It will take 32.55 months for the account to be paid off.

    In this question, we have r = 1.40%, PMT = $500 and Present Value = $13,000.

    We can use the nper formula in Excel to arrive at the answer.

    The formula in Excel is : = nper (rate, pmt, pv,[fv],[type])

    When we substitute the values in the question, the nper formula looks like this:

    =NPER (0.014,500,-13000)

    We enter the present value of the amount outstanding as a negative value, since excel considers the present value as an outflow (expense).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “One of your customers is delinquent on his accounts payable balance. you've mutually agreed to a repayment schedule of $500 per month. you ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers