Jerry buys a $2,700 motorcycle on a deferred payment plan. There is no down payment and no interest for eighteen months. Jerry must make a minimum payment of $75 a month. To avoid a retroactive APR of 21%, he must pay the balance in full before the 18 months has passed. If he pays $75 each month, how much should he pay the last month to avoid the interest charges?
For the answer to the question above, the answer to your question is seen below.To avoid paying the retroactive APR of 21% he will pay if cannot pay on time, Jerry’s last month payment must be $ 1,425.
