2. Whenever you take out a loan or carry a balance on a credit card, you pay interest. The way that the interest is calculated depends on the type of loan. Simple interest loans are loans where you pay interest only on the amount you borrowed. Federally subsidized student loans and most car loans are simple interest loans. Credit cards debts are in essence loans, but they are not simple interest loans because each month any unpaid interest is added to the amount on which you pay interest. So you pay interest on your unpaid interest! Suppose you plan to borrow $5000 from your uncle to purchase a used car. Your uncle agrees to give you a simple interest loan at an interest rate of 8% and wants you to repay the loan and the interest in one lump sum. The graph below shows how the amount of time it takes you to repay the loan affects the amount you owe. a. How long does it take for your uncle to make $1000 on this deal? Dy. YE 8000 -7200 y= X+b -6400 -5600 b. What is the y-intercept? What does it tell us? -4800 4= 5000 The umount owed 4000 -3200 2400 Ду c. Calculate the rate of change for three pairs of Ar -1600 -800 points. What do you notice? What is the meaning of Ду the in this scenario? 0.5 1, 1.5 2 2.5 3 3.5 4 4.5 5 5.5 Length of Loan (years) X Ar ($) peMo uno

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Equations and Inequations

Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.