Loan Balance Hank purchased a $20,000 car two years ago using an 8 percent, 5-year loan. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would need to receive for his car?

Question

Quizplus · Accepted Answer

Using an amortization calculator, we find that after two years, Hank still owes $12,941.12 on his loan. Therefore, the minimum price he would need to receive for his car would be $12,941.12, option C.

Loan Balance Hank Purchased a $20,000 Car Two Years Ago