Saturday, December 3, 2011

Finance Problem 3 Solution

This is the solution to the Algebra finance word problem asked by an anonymous user which read, "Alex has made 42 of the 48 payments he owes on his car but is having trouble continuing to make the payment in full. He has made an arrangement with the bank to pay 2/3rds of his monthly payment, rather than the entire payment, every month. How many months will it take Alex to pay off his car loan with this new payment arrangement?"

Ok, 1st find the remaining months :  48 - 42 = 6  So there are 6 months at full payments.  But, you are no longer doing full payments you are doing 2/3s of a payment.  So  2/3 of what would equal out 6 ?  Or

2x/3 = 6

2x = 18

x = 18/2 = 9 .. So it will take Alex 9 months to pay off his car loan with the new payment arrangement..

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