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The table shows a schedule of Inga's payment plan for a car.

\begin{tabular}{|c|c|c|c|}
\hline
\multicolumn{4}{|c|}{Inga's Payment Plan for the First 3 Years} \\
\hline
Year & Balance & Monthly Payment & \begin{tabular}{c} End of Year \\ Balance \end{tabular} \\
\hline
1 & [tex]$\$[/tex] 19,691.28[tex]$ & $[/tex]\[tex]$ 273.49$[/tex] & [tex]$\$[/tex] 16,409.40$ \\
\hline
2 & [tex]$\$[/tex] 16,409.40[tex]$ & $[/tex]\[tex]$ 273.49$[/tex] & [tex]$\$[/tex] 13,127.52$ \\
\hline
3 & [tex]$\$[/tex] 13,127.52[tex]$ & $[/tex]\[tex]$ 273.49$[/tex] & [tex]$\$[/tex] 9,845.64$ \\
\hline
\end{tabular}

How many more years will it take Inga to pay off the loan?

A. 2 years

B. 3 years



Answer :

GinnyAnswer
To determine how many more years it will take Inga to pay off the loan, let's carefully analyze the provided data and apply some logical reasoning step-by-step:

1. Understanding the Provided Table:
- Year 1:
- Starting Balance: $19,691.28
- Monthly Payment: $273.49
- End of Year Balance: $16,409.40
- Year 2:
- Starting Balance: $16,409.40
- Monthly Payment: $273.49
- End of Year Balance: $13,127.52
- Year 3:
- Starting Balance: $13,127.52
- Monthly Payment: $273.49
- End of Year Balance: $9,845.64

2. Identifying the Remaining Balance and Monthly Payment:
- At the end of Year 3, the remaining balance is $9,845.64.
- The monthly payment remains $273.49.

3. Calculating Annual Payments:
- Monthly Payment = $273.49
- Total Payments in a Year = [tex]$273.49 \times 12 = $[/tex]3,281.88.

4. Calculating Years Needed to Pay Off The Remaining Balance:
- Remaining Balance at End of Year 3 = $9,845.64.
- Annual Payment = $3,281.88.
- To find out how many additional years will be needed:
- Divide the remaining balance by the annual payment: [tex]$\frac{9,845.64}{3,281.88} \approx 3$[/tex] years.

Thus, Inga will need approximately 3 more years to fully pay off the loan.

So, the answer is:
- 3 years

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