10.Tim buys a $3,700 scooter on a deferred payment plan. There is no down payment and no
interest for 18 months. He must make a minimum payment of $125 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 $125 each month, how much should he pay the last month to avoid the interest charges?
of
Cost
payment (months-1)
1