Question

Ava’s newest financial goal is to eliminate the remainder of her student loan debt. She has about $8,950 left on her student loans. She determines that she can afford to make monthly payments of about $360. To track her progress, she plans to create a graph to model her situation. How should Ava label and scale her graph?

A.
x-axis scale, 0–20; label, Total Remaining Debt ($)
Y-axis scale, 0–9,000; label, Months
B.
x-axis scale, 0–30; label, Months
Y-axis scale, 0–9,000; label, Total Remaining Debt ($)
C.
x-axis scale, 0–20; label, Years
Y-axis scale, 0–9,000; label, Total Remaining Debt ($)
D.
x-axis scale, 0–30; label, Total Remaining Debt ($)
Y-axis scale, 0–9,000; label, Years
E.
x-axis scale, 0–20; label, Total Remaining Debt ($)
Y-axis scale, 0–9,000; label, Years

Answer 1

x-axis scale, 0–30; label, Months

y-axis scale, 0–9,000; label, Total Remaining Debt ($)

Explanation:

For the time scale you must have a value that goes over 25, and the units of months, not years. For the Remaining Debt scale the value needs to be in a range that goes over $8950

Answer 2

B.

x-axis scale, 0–30; label, Months

Y-axis scale, 0–9,000; label, Total Remaining Debt ($)

Explanation:

According to given data

Debt = $8950

Monthly payment = $360

Now we can calculate the total period required to eliminate the debt

Total months to eliminate debt = Total Debt/Monthly installment

Total months to eliminate debt = 8950/360

Total months to eliminate debt = 24.8 months

Now, by this calculate, we can say that it is only logical to plot time in graph with months, not years or days. Because if we plot graph with days, it will be too lengthy, on the other hand, if we plot graph with years, it will shrink to much and it will become very difficult to read it and estimate the progress. So all options with time in other than month will be eliminated and we will be left with option B. Notice that option a will be eliminated because we need to plot graph for 24.8 months but it contains 9000 months, which means 750 years. So it will be illogical to plot graph on this scale.