Amy took out a car loan for $30000 at 0% interest for $500 per month for 5 years. She paid 2 years on this loan. What is her total liability?

Question

Amy took out a car loan for $30000 at 0% interest for $500 per month for 5 years. She paid 2 years on this loan. What is her total liability?

A. $24000
B. $30000
C. $12000
D. $18000

Answer 1

Amy took out a car loan for $30000 and paid $500 per month for 5 years. This means she paid $500/month * 12 months/year * 5 years = $<<500125=30000>>30000.

Since she paid 2 years on this loan, Amy paid $500/month * 12 months/year * 2 years = $<<500*12*2=12000>>12000.
Her total liability is $30000 - $12000 = $<<30000-12000=18000>>18000.
Therefore, the correct answer is D. $18000.

Amy took out a car loan for $30000 at 0% interest for $500 per month for 5 years. She paid 2 years on this loan. What is her total liability?

Amy took out a car loan for $30000 and paid $500 per month for 5 years. This means she paid $500/month * 12 months/year * 5 years = $<<500*12*5=30000>>30000.

Amy took out a car loan for $30000 and paid $500 per month for 5 years. This means she paid $500/month * 12 months/year * 5 years = $<<500125=30000>>30000.