Evelyn took out a car loan for $16125 that has 0% APR for the first 14 months and will be paid off with monthly payments over 6
years. For how many month will evelyn be charged interest?
A.
58 months
B.
72 months
C.
86 months
D.
14 months
2 answers:
72 months=6 years
6×12=72
14 months 0% so evelyn be charged interest after 14 months
72-14=58 months evelyn be charged interest?
Answer:
Option B. 58 months
Step-by-step explanation:
Evelyn took a car loan for $16125 with 0% APR for the first 14 months.
This will be paid off with monthly payments over 6 years.
We have to calculate the months Evelyn will be charged interest.
Since Evelyn has to pay the total monthly payments for 6 years or 6×12 = 72 months.
Now we know Evelyn has paid 14 monthly payments without interest then remaining months for which Evelyn will pay the interest = 72 - 14 = 58
Option A. 58 months is the answer.
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