Question

How many monthly payments must be made for a 2 ½ -year loan?

a) 24
b) 30
c) 36
d) 42

Answer 1

For a 2 ½-year loan, there would be a total of 30 monthly payments, derived from multiplying 2.5 years by 12 months per year.

Step-by-step explanation:

For a 2 ½-year loan with monthly payments, the number of payments made will correspond to the number of months in the loan term. Since there are 12 months in a year, we can calculate the total number of payments as follows:

1. Multiply the number of years by the number of months per year: 2.5 years × 12 months/year = 30 months.
2. Each month corresponds to one payment. Therefore, there are 30 monthly payments in total.

The correct answer is b) 30 monthly payments.