AnswersPersonal FinancePractice TestQuestion 1
1
practice testMultiple Choice

Practice Test

Question 1 • Personal Finance

The table shows a schedule of the first year of Kamil’s payment plan for a car. Kamil’s Payment Plan for the First Year Year Balance Monthly Payment End of Year Balance 1 13 dollars comma 086 point 7 2 363 point 5 2 dollars 8 dollars comma 724 point 4 8 How many years will it take Kamil to pay off the loan?

Answer
A
2 years
B
4 years
C
1 year
D
3 years

Explanation

Kamil pays $363.52 each month, so he pays $363.52 × 12 = $4,362.24 in one year. The starting balance of $13,086.72 is exactly 36 monthly payments of $363.52, which is 3 years of payments. The correct choice is 3 years.

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