Question

the table shows a schedule of the first year of kamils payment plan for a car.
kamils payment plan for the first year

year	balance	monthly payment	end of year balance

how many years will it take kamil to pay off the loan?
○ 1 year
○ 2 years
○ 3 years
○ 4 years

Explanation:

Step1: Calculate annual payment

Monthly payment is $363.52, so annual payment is $363.52×12 = $4362.24.

Step2: Analyze balance reduction

After 1 year, balance reduces from $13,086.72 to $8,724.48, a reduction of $13,086.72 - $8,724.48 = $4,362.24, which matches annual payment.

Step3: Calculate years to pay off

Total loan initially: $13,086.72. Annual payment: $4,362.24. Number of years = $13,086.72 ÷ $4,362.24 = 3.

Answer:

3 years (corresponding to option "3 years")