14
QuizMultiple Choice

Mortgages and Home Ownership — Unit test

Question 14 • Personal Finance - EL3403

The table shows a schedule of the first year of Kamil’s payment plan for a car. Kamil’s Payment Plan for the First YearYearBalanceMonthly PaymentEnd of YearBalance1$13,086.72$363.52$8,724.48 How many years will it take Kamil to pay off the loan?

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

Explanation

Kamil pays $363.52 each month, or $363.52 × 12 = $4,362.24 per year. The original balance of $13,086.72 is exactly three annual payments of $4,362.24, so it will take 3 years to pay off the loan. The correct choice is 3 years.

AI-written and checked against the verified answer.

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