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# A \$240 interest-free loan is to be paid back in equal monthly payment

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Senior RC Moderator
Joined: 02 Nov 2016
Posts: 4119
GPA: 3.39
A \$240 interest-free loan is to be paid back in equal monthly payment  [#permalink]

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13 Feb 2019, 11:57
00:00

Difficulty:

35% (medium)

Question Stats:

67% (01:26) correct 33% (01:47) wrong based on 27 sessions

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A \$240 interest-free loan is to be paid back in equal monthly payments. If a total of 2.5% percent of the original amount of the loan is paid back semi-annually, then how many months will it take to pay back \$21.00 ?

A. 6
B. 7
C. 18
D. 21
E. 24

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Joined: 18 Aug 2017
Posts: 5020
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
Re: A \$240 interest-free loan is to be paid back in equal monthly payment  [#permalink]

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14 Feb 2019, 11:24
A \$240 interest-free loan is to be paid back in equal monthly payments. If a total of 2.5% percent of the original amount of the loan is paid back semi-annually, then how many months will it take to pay back \$21.00 ?

A. 6
B. 7
C. 18
D. 21
E. 24

amount 2.5% of 240 \$ = 6 \$ semi annually or say annually 12 \$ annually or say 1 \$ per month rate ..
so 21 \$ would be settled in
21 months
IMO D
Intern
Joined: 20 Nov 2018
Posts: 27
Location: India
Re: A \$240 interest-free loan is to be paid back in equal monthly payment  [#permalink]

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14 Feb 2019, 11:40
A \$240 interest-free loan is to be paid back in equal monthly payments. If a total of 2.5% percent of the original amount of the loan is paid back semi-annually, then how many months will it take to pay back \$21.00 ?

A. 6
B. 7
C. 18
D. 21
E. 24

2.5% (240) = 6

\$6 paid semi annually i.e., every six months
given: equal monthly payments
\$6 for six month is paid as each dollar a month

\$1 ---> 1 month
\$21----> 21 months

Option D

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Re: A \$240 interest-free loan is to be paid back in equal monthly payment   [#permalink] 14 Feb 2019, 11:40
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