Question

Alondra took out a car loan for $22,500 that has a 0% APR for the first 24

months and will be paid off with monthly payments over 5 years. For how
many months will Alondra be charged interest?

A. 60 months

B. 36 months

C. 84 months

D. 24 months​

Answer 1

The correct option is B.

Explanation:

It is given that Alondra took out a car loan for $22,500 that has a 0% APR for the first 24 months and will be paid off with monthly payments over 5 years.

We know that

1 year = 12 months

Using this conversion we get

5 year = 60 months

It means total number of months in 5 years is 60. For first 24 months the APR is 0%. So, the number of months will Alondra be charged interest is

`60-24=36`

Therefore the correct option is B.