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?
A. 86
B. 34
C. 60
D. 26
A. 86
B. 34
C. 60
D. 26
Answers
GPT-4o mini
To find out how many payments Michelle will be required to make after taking out the loan, we need to consider the loan's total duration and the fact that there are no payments for the first 26 months.
The loan is for a total duration of 5 years, which is equal to:
\[
5 \text{ years} \times 12 \text{ months/year} = 60 \text{ months}
\]
Since Michelle won't be making any payments for the first 26 months, the remaining time in which she will make payments is:
\[
60 \text{ months} - 26 \text{ months} = 34 \text{ months}
\]
Thus, Michelle will be required to make 34 payments after the initial 26 months.
The correct answer is: **B. 34**
The loan is for a total duration of 5 years, which is equal to:
\[
5 \text{ years} \times 12 \text{ months/year} = 60 \text{ months}
\]
Since Michelle won't be making any payments for the first 26 months, the remaining time in which she will make payments is:
\[
60 \text{ months} - 26 \text{ months} = 34 \text{ months}
\]
Thus, Michelle will be required to make 34 payments after the initial 26 months.
The correct answer is: **B. 34**