What will Victoria owe the lender after 10 years on her loan of $60,000 with monthly payments of $200?

The correct answer is that Victoria will still owe $60,000 after 10 years of making monthly payments of $200. This situation typically occurs when the payment amount is less than the interest accruing on the loan. In this case, if we assume that the loan does not amortize because the monthly payment is insufficient to cover even the interest charges, the principal balance of $60,000 will remain the same throughout the 10-year period.

In scenarios where monthly payments do not sufficiently address the interest, the borrower can become trapped in a cycle where they're paying down little to no principal, and the loan balance does not decrease. This type of loan setup is often seen with loans that have a negative amortization structure. Therefore, despite making consistent payments over the decade, Victoria's balance to the lender would remain at the original loan amount of $60,000.