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3 years ago

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Esme earns a net salary of $2,400 per month. She already has a savings account that has $100 in it. After paying her expenses ev

ery month, she’ll be able to add $100 to her savings account. Esme also plans to purchase a car priced at $20,000 using a no-interest loan. She will make a $300 payment on the loan every month. In how many months will Esme have enough money saved to pay off her loan completely?
A. 44.45 months
B. 45.75 months
C. 47.75 months
D. 49.75 months
E. 50.45 months

1 answer:

Mademuasel [1]3 years ago

3 0

Answer:

D. 49.75 months

Step-by-step explanation:

Esme earns a net salary of $2400 per month.

In her saving account she already have a balance of $100.

She saves $100 every month after her monthly expenses.

She plans to buy a car of $20000 using a no interest loan .

She usually make a $300 payment on the loan every month.

The number of months she will save enough money to pay off her loan completely can be calculated below.

let

x = number of months

The amount she saved altogether every month is $300 + $100 = $400.

Recall she already has $100 in her account

Amount of loan to be repaid = 100 + 400x

20000 = 100 + 400x

20000 - 100 = 400x

19900 = 400x

divide both sides by 400

x = 19900/400

x = 49.75 months

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