Amount of money borrowed $

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Suppose Basma wants to buy a car for $10000 and plans on paying 19 % down. (This means she is going to pay
19 % of the price up front and then will take a loan out for the rest of the purchase.)
a) What is the loan amount?
Amount of money borrowed = $
b) The formula for determining the payment on a loan is given by:
Loan Amount * (r/n)
-n*t
Мonthly Payтеnt 3D
(2-(1+5)
r = interest rate
n = payments per year
t = number of years
You always assume the interest is compounded every time a payment is due. So n = the number of
compoundings, which is the same as the number of payments in a year.
If the annual interest rate is 14.1% and it is compounded monthly, and Basma is able to pay $249 each mon th,
how long will it take her to pay off the car??
You must use the formula above to answer this question and show all algebraic work.
Answer =
years
(Round to one tenth of a year)
Transcribed Image Text:Suppose Basma wants to buy a car for $10000 and plans on paying 19 % down. (This means she is going to pay 19 % of the price up front and then will take a loan out for the rest of the purchase.) a) What is the loan amount? Amount of money borrowed = $ b) The formula for determining the payment on a loan is given by: Loan Amount * (r/n) -n*t Мonthly Payтеnt 3D (2-(1+5) r = interest rate n = payments per year t = number of years You always assume the interest is compounded every time a payment is due. So n = the number of compoundings, which is the same as the number of payments in a year. If the annual interest rate is 14.1% and it is compounded monthly, and Basma is able to pay $249 each mon th, how long will it take her to pay off the car?? You must use the formula above to answer this question and show all algebraic work. Answer = years (Round to one tenth of a year)
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