Question

Quiana took out a loan to pay for a new car. Initially she owned the lender $15,234.68. She has repaid $247.43 of the loan each month for the past 5 months. What is the net changed to the loan from Quiana's perspective over the past 5 months?

Answer 1

Answer: Quiana's initial loan amount is -15, 234.68. This is the total amount of money she must pay back to the lender.

Answer 2

`Net\ Change = \$13997.53`

Explanation:

Given

`Debt = \$15,234.68`

`Monthly\ Payment= \$247.43`

`Duration = 5\ months`

Required

Determine the net change

First, we need to determine the total repaid amount;

`Amount = Monthly\ Payment * Duration`

Substitute values for Monthly Payment and Duration

`Amount = \$247.43 * 5`

`Amount = \$1237.15`

The net change is the difference between the loan amount and the repaid amount

`Net\ Change = Loan\ Amount - Repaid\ Amount`

`Net\ Change = \$15,234.68 - \$1237.15`

`Net\ Change = \$13997.53`

Hence, the net change over the period of 5 months is $13997.53