Concept explainers
Buying a Car: If you buy a $25,000 car at an APR of 6%, then your monthly payments depends on the term of the loan. If the term is t months, then your monthly payment is
a. Make a graph of the monthly payments versus the length of the term, in months. Include terms from 12 to 60 months.
b. Is the graph increasing or decreasing? What does that mean in practical terms?
c. Do you lower your monthly payment more by changing the term of the loan from 12 to 24 months or from 48 to 60 months? (Suggestion: you don’t need a calculation here. The concavity of the graph can give you the answer.)
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FUNCTIONS AND CHANGE COMBO
- find interest=you have agreed to borrow $50 and after 6 months pay back $58.arrow_forwardbrooke's credit card has an annual interest rate of 21% on her unpaid balance, which averages $900. Approximate Brooke's monthly payments, if she wants to pay her card off in a year. Assume she doesn't use her card again during that time.arrow_forwardA couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is j12 = 12%, what is R?arrow_forward
- The monthly payment is $ enter your response here. (Round to the nearest cent as needed.)arrow_forwardA $120,000 home mortgage for 35 years at 9.5% has a monthly payment of $985.93. Part of the monthly payment goes for the interest charge on the unpaid balance, and the remainder of the payment is used to reduce the principal. The amount that goes for interest is attached. In these formulas, P is the amount of the mortgage, r is the interest rate (in decimal form), M is the monthly payment, and t is the time in years. (a) Use a graphing utility to graph each function in the same viewing window. (The viewing window should show all 35 years of mortgage payments.) (b) In the early years of the mortgage, the larger part of the monthly payment goes for what purpose? Approximate the time when the monthly payment is evenly divided between interest and principal reduction. (c) Use the graphs in part (a) to make a conjecture about the relationship between the slopes of the tangent lines to the two curves for a specified value of t. Give an analytical argument to ver ify your conjecture. Find…arrow_forwardTo increase his retirement income. A man put away $600 per month for 25 years in an account that earns 5%.After 25 years he retires and plans to withdraw money each month from the account for the next 30 years. Ifthe interest rate stays the same, what is the maximum amount of money he can withdraw?arrow_forward
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- helparrow_forwardThe principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year. P=$14,500, r=7%, t=30 daysarrow_forwardmr. and mrs lkan deposite $15,000 into college saving account with an annual compound interest rate of 5.25% when their daughter was born.if the money remain in the saving account until she 18, what will br the total amont in the account? b(1+r)^tarrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill