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In Slovakia, short-term non-bank loans launched, which few people have their "take," are considered unfavorable. Often, the borrower ends up in a spiral of debt, which takes more and more onerous loans to repay earlier loans.

Calculate how many 7-year loans of € 1400 with 23% APR can repay the man even if the monthly loan repayments and interest payment spend all income 402 euros?

Final Answer:

m =  5

Step-by-step explanation:

$$\begin{gathered} v=402\text{eur} \\ {r}_0=100\%+23\%=1+\frac{23}{100}=1.23 \\ {r}_1=r_0^7=1.23^7\doteq 4.2593 \\ s=\frac{1400\cdot r_1}{12\cdot 7}=\frac{1400\cdot 4.2593}{12\cdot 7}\doteq 70.9879\text{eur} \\ {m}_0=\frac{v}{s}=\frac{402}{70.9879}\doteq 5.6629 \\ m=\lfloor m_0\rfloor =\lfloor 5.6629\rfloor =5 \end{gathered}$$

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