Question

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

Answer 1

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 2

Option B. 58 months

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.