Question: Jerry buys a $2,700 motorcycle on a deferred payment plan. There is no down payment and no interest for 18 months. Jerry must make a

Jerry buys a $2,700 motorcycle on a deferred payment plan. There is no down payment and no interest for 18 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?

A. $1,425 B. $1,350 C. $1,500 D. $2,075

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