Question

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

Write a rational number to express the initial loan amount as it relates to Quiana’s bank account.

Answer 1

$1,237 is how much you get in 5 months of the loan, Quiana will take a certain amount out and will end up with $1,237

Answer 2

Initial amount of loan = $15,234.68

Monthly payment = $247.43

Number of months = 5

Required Information:

Net change in loan = ?

Answer:

Net change in loan = $1,237.15 = $1,237(3/20)

Step-by-step explanation:

Quiana owed her lender an amount of 15,234.68 initially, she repaid the lender each month with an amount of $247.43 for 5 months, so the total amount that she repaid is

Total amount repaid = Monthly payment*Number of months

Total amount repaid = $247.43 × 5

Total amount repaid = $1,237.15

The remaining owed amount is given by

Balance = Initial amount of loan - Total amount repaid

Balance = $15,234.68 - $1237.15

Balance = $13,997.53

So the net change to the loan from Quiana's perspective over the past 5 months is,

Net change in loan = Initial amount of loan - Balance

Net change in loan = $15,234.68 - $13,997.53

Net change in loan = $1,237.15

or

Net change in loan = $1,237(3/20)

Therefore, the net change to the loan from Quiana's perspective over the past 5 months is $1,237.15