A debt of $12,000 with interest at 5% compounded monthly is to be repaid by equal payments at the end of each year for three years and nine months. What is the term of repayment? None 12 months 3.9 years 3.75 years

Respuesta :

Answer:

  3.75 years

Step-by-step explanation:

If the debt is to be paid in 3 years, 9 months, then the term of the loan is ...

  3 9/12 = 3 3/4 = 3.75 . . . years