Mathematics

Stephen Vance

1 November, 17:00

Elmer took out an 18-month loan for $1400 at an appliance store to be paid

back with monthly payments at a 22.8% APR, compounded monthly. If the

loan offers no payments for the first 9 months, which of these groups of

values plugged into the TVM Solver of a graphing calculator will give him the

correct answer for the amount of the monthly payment over the last 9 months

of the loan?

O

A. N=0.75; 1% = 22.8; PV=-1400; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

O

B. N=9; 1% = 22.8; PV=-1400; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

O

C. N=0.75; 1% = 22.8; PV=-1658.42; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

O

D. N=9; 1% = 22.8; PV=-1658.42; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END