Question

ingas payment plan for the first 3 years
year | balance | monthly payment | end of year balance
1 | $19,691.28 | $273.49 | $16,409.40
2 | $16,409.40 | $273.49 | $13,127.52
3 | $13,127.52 | $273.49 | $9,845.64

how many more years will it take inga to pay off the loan?
○ 2 years.
○ 3 years
○ 4 years
○ 6 years

Explanation:

Step1: Analyze the pattern of balance reduction

From year 1 to 2: $19691.28 - 16409.40 = 3281.88$ (annual reduction)
From year 2 to 3: $16409.40 - 13127.52 = 3281.88$ (same annual reduction)
From year 3 to next: $13127.52 - 9845.64 = 3281.88$ (consistent annual reduction)

Step2: Calculate remaining balance after year 3

Remaining balance at year 3 end: $9845.64$

Step3: Determine number of years to pay off

Each year, the balance reduces by $3281.88$. Let $n$ be the number of years.
We need to find $n$ such that $9845.64 - 3281.88n \leq 0$
Solve for $n$: $n \geq \frac{9845.64}{3281.88} = 3$ (since $3281.88\times3 = 9845.64$)

Answer:

B. 3 years