Following his high school graduation, Brandon buys a new laptop for $1,500 through BestSpend's payment program which requires no money down and only a $40/month payment at the end of each month. Interest on purchases through this program accrues at 25% APR compounded monthly.
Instead of the $40/month minimum payment, assume that Brandon decides to pay $100 each month. How long will it take Brandon to pay off his laptop now? (see Practice Problem 4)
A. 20.1 months
B. 17.7 months
C. 18.2 months
D. It will take Brandon just as long to pay off the loan as the $40/month payment would.
Answers: 1
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