Mathematics

Bruno Friedman

26 February, 18:10

Homer took out a 6-month loan for $700 at an appliance store to be paid

back with monthly payments at a 20.4% APR, compounded monthly. If the

loan offers no payments for the first 3 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 3 months

of the loan?

O

A. N=0.25; 1% = 20.4; PV=-700; PMT =; FV=0; P/Y=12; C/Y=12;

PMT:END

O

B. N=0.25; 1% = 20.4; PV=-736.31; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

O

c. N=3; 1% = 20.4; PV=-736.31; PMT =; FV=0; P/Y=12; C/Y=12;

PMT:END

O

D. N=3; 1% = 20.4; PV=-700; PMT =; FV=0; P/Y=12; C/Y=12; PMT:END