To determine how many more years it will take Inga to pay off the loan, let's carefully analyze the provided data and apply some logical reasoning step-by-step:
1. Understanding the Provided Table:
- Year 1:
- Starting Balance: $19,691.28
- Monthly Payment: $273.49
- End of Year Balance: $16,409.40
- Year 2:
- Starting Balance: $16,409.40
- Monthly Payment: $273.49
- End of Year Balance: $13,127.52
- Year 3:
- Starting Balance: $13,127.52
- Monthly Payment: $273.49
- End of Year Balance: $9,845.64
2. Identifying the Remaining Balance and Monthly Payment:
- At the end of Year 3, the remaining balance is $9,845.64.
- The monthly payment remains $273.49.
3. Calculating Annual Payments:
- Monthly Payment = $273.49
- Total Payments in a Year = [tex]$273.49 \times 12 = $[/tex]3,281.88.
4. Calculating Years Needed to Pay Off The Remaining Balance:
- Remaining Balance at End of Year 3 = $9,845.64.
- Annual Payment = $3,281.88.
- To find out how many additional years will be needed:
- Divide the remaining balance by the annual payment: [tex]$\frac{9,845.64}{3,281.88} \approx 3$[/tex] years.
Thus, Inga will need approximately 3 more years to fully pay off the loan.
So, the answer is:
- 3 years
