Question

Help ASAP Jake took out an interest-free loan of $2,401.56 from the bank to buy a car. He paid the bank $200.13 each month until it was paid back completely. Which of the following is true?

A.
Jake paid his loan back in 13 months.
B.
Jake paid his loan back in 11 months.
C.
Jake paid his loan back in 14 months.
D.
Jake paid his loan back in 12 months.

Answer 1

Answer: D. Jake paid his loan in 12 months

Explanation:

Jake took out an interest-free loan of $2,401.56 from the bank to buy a car.

Since he has to pay no interest for the loan, the monthly payments are totally used to cover the amount of the loan.

He paid the bank $200.13 each month, thus the total months needed to pay the loan is:

`(\$2,401.56 )/(\$200.13)=12`

Answer: D. Jake paid his loan in 12 months