Tony is offering Phil two repayment plans for a long overdue loan. Offer 1 is...
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Tony is offering Phil two repayment plans for a long overdue loan. Offer 1 is a visit from an enforcer and the debt is due in full at once. Offer 2 is to pay back $4,000 at the end of each year at 15% interest rate until the loan principal is paid off. Phil owes Tony $20,000. How long will it take for Phil to pay off the loan if he takes Offer 2? 5.52 years 9.92 years 6.64 years 7.27 years
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