10
QuizMultiple Choice

The Cost of Credit — Quiz

Question 10 • Personal Finance

The table shows a schedule of Inga’s payment plan for a car. Inga’s Payment Plan for the First 3 Years Year Balance Monthly Payment End of Year Balance 1 19 dollars comma 691 point 2 8 273 point 4 9 dollars 16 dollars comma 409 point 4 0 2 16 dollars comma 409 point 4 0 273 point 4 9 dollars 13 dollars comma 127 point 5 2 3 13 dollars comma 127 point 5 2 273 point 4 9 dollars 9 dollars comma 845 point 6 4 How many more years will it take Inga to pay off the loan?

Answer
A
4 years
B
6 years
C
3 years
D
2 years.

Explanation

The balance drops by $3,281.88 each year: $19,691.28 − $16,409.40 = $3,281.88, and the same reduction continues in the table. After the first 3 years, Inga owes $9,845.64. Dividing that remaining balance by $3,281.88 per year gives 3 more years, so the answer is 3 years.

AI-written and checked against the verified answer.