Answer: To calculate the length of a loan, you need to know the total cost of the loan, the monthly payment amount, and the interest rate. In this case, the total cost of the car is $16,000, the monthly payment amount is $250, and the interest rate is 7.3%.
First, you need to calculate the total interest that will be paid on the loan. This can be done by multiplying the total cost of the loan by the interest rate, and then dividing by 100 to convert the result to a percentage. In this case, the total interest paid would be $16,000 * 7.3 / 100 = $1,168.
Next, you need to subtract the total interest from the total cost of the loan to find the total amount of the loan that will be used to pay for the car. In this case, the total amount of the loan used to pay for the car would be $16,000 - $1,168 = $14,832.
Finally, you can use this total amount and the monthly payment amount to calculate the length of the loan by dividing the total amount by the monthly payment amount. In this case, the length of the loan would be $14,832 / $250 = 59.32 months, or just over four years. The answer is 59.32 months.
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