Question

Savannah took out a 5-year loan for $6500 at a furniture store to be paid back with monthly payments at a 17.3% APR. If the loan offers no payments for the first 21 months, how many payments will Savannah be required to make?
A.81
B.21
C.60
D.39

Answer 1

Since they offer no loans for the first 21 months, cancel out C
A
B
D 
are still somewhat possible 
D is the answer

Answer 2

Answer:

Option D is the right answer.

Step-by-step explanation:

The loan amount - $6500

The APR is = 17.3%

The loan term is = 5 years or $5\times12=60$ months

Now given is that the loan offers no payments for the first 21 months. This means Savannah will be required to make = $60-21=39$ payments.

Hence, the answer is 39 or option D.