Question

Craig has $1850 dollars in a bank account that he uses to make automatic payments of $400.73 on his car loan. If Craig stops making deposits to that account, when would automatic payments make the value of the account zero?

Answer 1

Given:

Amount in the bank account = $1850

Monthly payment of can loan = $400.73

To find:

When would automatic payments make the value of the account zero?

Solution:

Craig stops making deposits to that account. So, amount $1850 in the bank account is used to make monthly payment of can loan.

On dividing the amount by monthly payment, we get

$\dfrac{1850}{400.73}=4.61657$

It means, the amount is sufficient for 4 payment but for the 5th payment the amount is not sufficient.

Therefore, the 5th automatic payments make the value of the account zero.