Question

Question

Juanita borrowed $7,000 interest free from her mother to buy a car. Juanita pays back $150 per month to her mother. How much will she still owe after 2 years of payments?

Answer 1

Answer: $3,400

Explanation:

Juanita owes $7,000, she pays $150 a month for two years.

Step 1: Create an equation we can plug our values into

7,000=150x +b ------> x=# of months --------> b=what is still owed

There are 12 months in a year. 12(2)=24

7,000=150(24)+b

7,000=3600 +b

-3600 -3600

$3,400=b