Answer:
C. 18
Step-by-step explanation:
We can find the numbers of payments using following formula
PV = PMT(1- (1+r)^-n)/r
PVr / PMT = 1 - (1+r)^-n
Where
PV = present value = $1,100
PMT = monthly payments = $71.50
r = interest rate = 19.2% / 12 = 1.6%
n = numbers of month = ?
Placing values in the formula
(1+r)^-n = 1 - PVr /PMT
1.016^-n = 1-1100 x 0.016/71.50
1.016^-n = 0.753846154
-n x log 1.016 = log 0.753846154
n = - log 0.753846154 /log 1.016
n = 17.8
n = 18 payments
