Answer:
The years of repayment is 7.96 years
Explanation:
The number of years of the loan repayment can be computed using nper formula in excel.
=nper(rate,-pmt,pv,fv)
rate is the monthly interest rate which is 6.6%/12=0.0055
pmt is the amount of monthly repayment which is $2,400
pv is the amount of the finance package received which is $178,000
fv is the total amount of repayment which is unknown hence taken as zero
=nper(0.0055 ,-2400,178000,0)= 95.55 months
= 95.55 /12 months=7.96 years
