Suppose Fred borrowed $5,765 for 49 months and Joanna borrowed $4,303. Fred's loan used the simple discount model with an annual rate of 4.9% while Joanne's loan used the simple interest model with an annual rate of 6.8%. If their maturity values were the same, how many months was Joanna's loan for? Round your answer to the nearest month .

Suppose Fred borrowed $5,765 for 49 months and Joanna borrowed $4,303. Fred's loan used the simple discount model with an annual rate of 4.9% while Joanne's loan used the simple interest model with an annual rate of 6.8%. If their maturity values were the same, how many months was Joanna's loan for? Round your answer to the nearest month .

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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