AAFM Exam CWM_LEVEL_2 Topic 1 Question 83 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 83
Topic #: 1

Section C (4 Mark)

Read the senario and answer to the question.

If Mr. Mehta is paying interest rate 12%p.a on his housing loan and 10% p.a. on car loans, in how many months would he pay off his housing loan and car loan?

AHouse loan-321 month, Car Loan-129 months

BHouse loan-540 month, Car Loan-318 months

CHouse loan-342 month, Car Loan-249 months

DHouse loan-432 month, Car Loan-429 months

Show Suggested Answer

Suggested Answer: B

by Arletta at Jul 17, 2024, 07:27 PM

Limited Time Offer

25%

Off

Get Premium CWM_LEVEL_2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kaitlyn

6 months ago

Wow, that's a lot of months to pay off a loan! I hope Mr. Mehta has a good retirement plan in place.

upvoted 0 times

Curtis

5 months ago

Hopefully he has a solid financial plan for his retirement.

upvoted 0 times

...

Lina

5 months ago

I agree, Mr. Mehta must have taken quite a bit of time to pay off both loans.

upvoted 0 times

...

Viola

5 months ago

I know, those interest rates can really add up over time.

upvoted 0 times

...

Carri

6 months ago

This is a tricky one. I'll need to double-check my calculations, but I'm leaning towards Option C as well.

upvoted 0 times

Oren

5 months ago

Let's go with Option C then. It seems like the most logical answer.

upvoted 0 times

...

Celia

5 months ago

I agree. Option C seems like the most reasonable choice based on the interest rates provided.

upvoted 0 times

...

Eileen

5 months ago

That's true. Once we have that, we can figure out how many months it would take to pay off each loan.

upvoted 0 times

...

Kimberely

5 months ago

I think the key is to calculate the total amount of interest paid on each loan first.

upvoted 0 times

...

Rochell

7 months ago

Option B is way too long for the repayment periods. That can't be right.

upvoted 0 times

Jade

6 months ago

I also think option A is the most likely answer based on the interest rates.

upvoted 0 times

...

Curt

6 months ago

Yeah, I agree. Option B does seem too long for both loans.

upvoted 0 times

...

Joni

6 months ago

I think option A seems more reasonable for the repayment periods.

upvoted 0 times

...

Eun

7 months ago

I calculated it and I am confident that the answer is D.

upvoted 0 times

...

Chi

7 months ago

I'm not sure about this one. The numbers seem a bit high, but I guess it depends on the loan amount and other factors.

upvoted 0 times

...

Rickie

7 months ago

I'm leaning towards B, it seems more reasonable to me.

upvoted 0 times

...

Aliza

7 months ago

Option C looks like the correct answer to me. The calculations seem to make sense.

upvoted 0 times

Marsha

6 months ago

I agree, option C looks like the right answer.

upvoted 0 times

...

Ty

6 months ago

Yeah, the calculations seem to add up.

upvoted 0 times

...

Terrilyn

6 months ago

I think option C is correct.

upvoted 0 times

...

Sommer

6 months ago

Yes, option C does seem like the most logical choice.

upvoted 0 times

...

Sue

6 months ago

I agree, the calculations seem to add up.

upvoted 0 times

...

Stephaine

7 months ago

I think option C is correct.

upvoted 0 times

...

Ozell

7 months ago

I disagree, I believe the answer is C.

upvoted 0 times

...

Daron

8 months ago

I think the answer is A.

upvoted 0 times

...