Car payments are determined using simple interest. To finance your vehicle purchase you have two choices. Write two equations, one for each bank, that models the banks' loan options using x for the price of the vehicle and y to represent the total cost (price, interest and origination fees) paid on each loan. Be sure to label which equation goes with which bank. Bank A: Finance the full price of the vehicle at 5% with an origination fee of $300 paid over 5 years. Bank B: Finance the full price of the vehicle at 3.5% paid over 6 years (no additional fees)
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.
Car payments are determined using simple interest. To finance your vehicle purchase you have two choices. Write two equations, one for each bank, that models the banks' loan options using x for the price of the vehicle and y to represent the total cost (price, interest and origination fees) paid on each loan. Be sure to label which equation goes with which bank.
Bank A: Finance the full price of the vehicle at 5% with an origination fee of $300 paid over 5 years.
Bank B: Finance the full price of the vehicle at 3.5% paid over 6 years (no additional fees)
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