Question
Person A owes person B 45000. If the court orders A to pay back B in monthly instalments. PeronA pays 1/18 of the loan back each month. A makes the first payment on the 1st February 2017, when will A make the last payment?
SELECT THE CORRECT ANSWER
A. 1st of Augus 2017
B. 1st of July 2018
C. 1st of July 2017
D. 1st of June 2018
E. 1st August 2018
F. None of the given answers.
SELECT THE CORRECT ANSWER
A. 1st of Augus 2017
B. 1st of July 2018
C. 1st of July 2017
D. 1st of June 2018
E. 1st August 2018
F. None of the given answers.
Answers
GPT-4o mini
To determine when Person A will make the last payment, we need to calculate the monthly payment amount and the total number of payments.
1. Calculate the monthly payment:
Person A owes $45,000 and pays back \( \frac{1}{18} \) of the loan each month.
\[
\text{Monthly Payment} = \frac{45000}{18} = 2500
\]
2. Calculate the total number of payments:
Since Person A is paying back \( \frac{1}{18} \) of the loan each month until the loan is fully paid, there will be a total of 18 monthly payments.
3. Determine the date of the last payment:
- The first payment is made on 1st February 2017.
- The last payment will be made after 17 more payments (since the first one counts as payment 1).
Counting 18 monthly payments starting from 1st February 2017:
- Payment 1: 1st February 2017
- Payment 2: 1st March 2017
- Payment 3: 1st April 2017
- Payment 4: 1st May 2017
- Payment 5: 1st June 2017
- Payment 6: 1st July 2017
- Payment 7: 1st August 2017
- Payment 8: 1st September 2017
- Payment 9: 1st October 2017
- Payment 10: 1st November 2017
- Payment 11: 1st December 2017
- Payment 12: 1st January 2018
- Payment 13: 1st February 2018
- Payment 14: 1st March 2018
- Payment 15: 1st April 2018
- Payment 16: 1st May 2018
- Payment 17: 1st June 2018
- Payment 18: 1st July 2018
Therefore, the last payment will be on **1st July 2018**.
The correct answer is **B. 1st of July 2018**.
1. Calculate the monthly payment:
Person A owes $45,000 and pays back \( \frac{1}{18} \) of the loan each month.
\[
\text{Monthly Payment} = \frac{45000}{18} = 2500
\]
2. Calculate the total number of payments:
Since Person A is paying back \( \frac{1}{18} \) of the loan each month until the loan is fully paid, there will be a total of 18 monthly payments.
3. Determine the date of the last payment:
- The first payment is made on 1st February 2017.
- The last payment will be made after 17 more payments (since the first one counts as payment 1).
Counting 18 monthly payments starting from 1st February 2017:
- Payment 1: 1st February 2017
- Payment 2: 1st March 2017
- Payment 3: 1st April 2017
- Payment 4: 1st May 2017
- Payment 5: 1st June 2017
- Payment 6: 1st July 2017
- Payment 7: 1st August 2017
- Payment 8: 1st September 2017
- Payment 9: 1st October 2017
- Payment 10: 1st November 2017
- Payment 11: 1st December 2017
- Payment 12: 1st January 2018
- Payment 13: 1st February 2018
- Payment 14: 1st March 2018
- Payment 15: 1st April 2018
- Payment 16: 1st May 2018
- Payment 17: 1st June 2018
- Payment 18: 1st July 2018
Therefore, the last payment will be on **1st July 2018**.
The correct answer is **B. 1st of July 2018**.