4
QuizMultiple Choice

Credit and Loans

Question 4 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

The table shows a schedule of Jorge’s payment plan for a car. Jorge’s Payment PlanYearBalanceMonthly PaymentEnd of YearBalance1$15,469.80$257.83 2 $257.83 3 $257.83 4 $257.83 5 $257.83 6 $257.83 How many years will it take Jorge to pay off the loan?

Answer
3
3 years
4
4 years
5
5 years
6
6 years

Explanation

Jorge pays $257.83 each month, so in one year he pays $257.83 × 12 = $3,093.96. The loan balance of $15,469.80 equals five years of payments: $3,093.96 × 5 = $15,469.80. Therefore, it will take him 5 years to pay off the loan.

AI-written and checked against the verified answer.

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