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15 February, 16:02

Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?

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  1. 15 February, 16:20
    0
    Given:

    3 year loan

    $2,075 loan amount

    10.7% Loan APR

    *no payment for the first 11 months.

    3 years is equivalent to 36 months.

    36 months - 11 months = 25 months.

    Colton must make 25 monthly payments to pay off his loan.

    Usually, businesses can give this kind of promo because the interest in the months of no payments have already been added in the list price of the product. Thus, ensuring that the company will always profit from this promotion.
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Home » Business » Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?
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