the table shows a schedule of the first year of kamils payment plan for a car.\n\nkamils payment plan for…

the table shows a schedule of the first year of kamils payment plan for a car.\n\nkamils payment plan for the first year\n| year | balance | monthly payment | end of year balance |\n| ---- | ---- | ---- | ---- |\n| 1 | $13,086.72 | $363.52 | $8,724.48 |\n\nhow many years will it take kamil to pay off the loan?\no 1 year\no 2 years\no 3 years\no 4 years

the table shows a schedule of the first year of kamils payment plan for a car.\n\nkamils payment plan for the first year\n| year | balance | monthly payment | end of year balance |\n| ---- | ---- | ---- | ---- |\n| 1 | $13,086.72 | $363.52 | $8,724.48 |\n\nhow many years will it take kamil to pay off the loan?\no 1 year\no 2 years\no 3 years\no 4 years

Answer

Explanation:

Step1: Calculate total amount paid in year 1

The monthly payment is $363.52. In a year (12 months), the total amount paid is $363.52×12 = $4362.24.

Step2: Find remaining balance after year 1

The initial balance was $13,086.72 and after year - 1 payment, the end - of - year balance is $8,724.48.

Step3: Calculate number of years to pay off remaining balance

The remaining balance is $8,724.48. Since the annual payment is $4362.24, the number of years to pay off the remaining balance is $\frac{8724.48}{4362.24}=2$ years. In total, including the first year, it will take 3 years to pay off the loan.

Answer:

3 years