An individual took out a loan to purchase a car. The total cost of the car was $20,000, but they received a trade-in credit of $5,000 from their old car. They paid $2,000 as a down payment and financed the rest with a loan. The car insurance costs $150 and gas costs $75 each month. What is the liability in this scenario?

The loan is the amount left after subtracting the trade-in credit and down payment from the car’s $20,000 cost: $20,000 − $5,000 − $2,000 = $13,000. That unpaid amount is the liability, so the correct choice is the $13,000 car loan. The monthly insurance and gas costs are expenses, not part of the loan liability.

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