Answers2027 Ignite Financial Literacy-Personal Finance - EL3403The Cost of CreditQuestion 14
14
QuizMultiple Choice

The Cost of Credit

Question 14 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

The table shows a schedule of Inga’s payment plan for a car. Inga’s Payment Plan for the First 3 YearsYearBalanceMonthly PaymentEnd of YearBalance1$19,691.28$273.49$16,409.402$16,409.40$273.49$13,127.523$13,127.52$273.49$9,845.64 How many more years will it take Inga to pay off the loan?

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

Explanation

At the end of the first 3 years, Inga still owes $9,845.64. Her monthly payment is $273.49, so 36 more monthly payments total $273.49 × 36 = $9,845.64. Since 36 months is 3 years, the correct choice is 3 years.

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