Question

Michelle took out a 5-year loan for $1650 at a computer store to be paid back with monthly payments at an 8.9% APR. If the loan offers no payments for the first 26 months, how many payments will Michelle be required to make?

Answer 1

Michelle will be required to make 34 payments.

Explanation:

Michelle took out a 5-year loan for $1650 at a computer store to be paid back with monthly payments at an 8.9% APR.

The loan amount = $1650

The APR is =8.9%

The loan term is = 5 years or
`5*12=60` months

Now given is that the loan offers no payments for the first 26 months. This means Michelle will be required to make =
`60-26=34` payments.

Hence, the answer is: Michelle will be required to make 34 payments.