If a person is going to borrow $30,000 for a car and pay it off with a constant mortgage payment every month for 5 years, what do you know about their car payment (if the interest rate is positive)?
A)Nothing.
B)The payment is more than $500 per month.
C)The payment is exactly than $500 per month.
D)The payment is less than $500 per month.

Question

Quizplus · Accepted Answer

Since the borrower is repaying a loan of $30,000 at a positive interest rate over 5 years, the constant mortgage payment will likely be more than $500 per month, taking into account the added interest expenses.

If a Person Is Going to Borrow $30,000 for a Car