Question

how many more years will it take inga to pay off the loan?

2 years.
3 years
4 years
6 years

Explanation:

Analyze the annual balance reduction

We first determine how much the loan balance decreases each year.
For Year 1:

$$ \$19,691.28 - \$16,409.40 = \$3,281.88 $$

For Year 2:

$$ \$16,409.40 - \$13,127.52 = \$3,281.88 $$

For Year 3:

$$ \$13,127.52 - \$9,845.64 = \$3,281.88 $$

The balance decreases by exactly \( \$3,281.88 \) each year.

Calculate the remaining years needed

We divide the remaining balance at the end of Year 3 by the annual reduction rate.
The balance at the end of Year 3 is \( \$9,845.64 \).

$$ \text{Remaining Years} = \frac{\$9,845.64}{\$3,281.88} = 3 $$

It will take exactly 3 more years to pay off the loan.

Answer:

• 2 years.
• 3 years (Correct answer)
• 4 years
• 6 years