Question

Brooke took out a 4-year loan for $1825 at a computer store to be paid back with monthly payments at a 12.5% APR. If the loan offers no payments for the first 17 months, how many payments will Brooke be required to make?

A. 31
B. 48
C. 65
D. 17

Answer 1

31

Explanation:

Apex Confirmed

Answer 2

Answer would be 'A.31'.

Explanation:

Given

Present value of loan = $1825

Time for returning the loan = 4 years,

Number of months in 1 year = 12,

So, the number of months in 4 years = 12 × 4 = 48

Number of months spent = 17,

∴ Remaining months = 48 - 17 = 31

Since, the payment of the loan is monthly.

Hence, he will be required 31 payments to pay the loan amount.

i.e. OPTION 'A' is correct.