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 would be 'A.31'.

Step-by-step 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.