Homework Help is Here – Start Your Trial Now!
Math
Algebra
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

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

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
See similar textbooks
icon
Related questions
Question

how long does it take for your uncle to make $1000 on this deal?

what is the y- intercept? WHAT DOES IT TELL US?

and i need help with question c

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 $1000 on this deal? Dy x+b 8000 -7200 y= 6400 -5600 b. What is the y-intercept? What does it tell us? 4800 4=5000 The amount owed 4000 3200 -2400 Ду c. Calculate the rate of change for three pairs of Ar -1600 800 points. What do you notice? What is the meaning of Ay in this scenario? the Ar 0.5 1, 1.5 2 2.5.3 3.5.4 4.5.55.5 6 Length of Loan (years) X. d. Write an equation for the graph. Define your variables. How can you make sure your equation is correct? e. You look up simple interest formulas on the Internet and find the following formula: A = P + Prt, where A is the amount owed, P is the principal, r is the interest rate, and t is time or length of the loan in years. Explain how this formula relates to your equation. HINT: Use the information given in the problem above and input it into the formula. What do you see? Note: The simple interest formula only applies in a case where the entire amount, principal plus interest, is repaid all at once when the loan is due (like the hypothetical situation with your uncle.) A simple interest car loan or a student loan, however, is paid back monthly over the term of the loan. Therefore the principal owed is decreasing throughout the period over which you pay it back and so the interest you owe decreases each month. In the end you only pay about half of the interest given by the simple interest formula. Adapted from Los Medanos College Intermediate Algebra Class Activities Amount Owed ($)
Transcribed Image Text: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 $1000 on this deal? Dy x+b 8000 -7200 y= 6400 -5600 b. What is the y-intercept? What does it tell us? 4800 4=5000 The amount owed 4000 3200 -2400 Ду c. Calculate the rate of change for three pairs of Ar -1600 800 points. What do you notice? What is the meaning of Ay in this scenario? the Ar 0.5 1, 1.5 2 2.5.3 3.5.4 4.5.55.5 6 Length of Loan (years) X. d. Write an equation for the graph. Define your variables. How can you make sure your equation is correct? e. You look up simple interest formulas on the Internet and find the following formula: A = P + Prt, where A is the amount owed, P is the principal, r is the interest rate, and t is time or length of the loan in years. Explain how this formula relates to your equation. HINT: Use the information given in the problem above and input it into the formula. What do you see? Note: The simple interest formula only applies in a case where the entire amount, principal plus interest, is repaid all at once when the loan is due (like the hypothetical situation with your uncle.) A simple interest car loan or a student loan, however, is paid back monthly over the term of the loan. Therefore the principal owed is decreasing throughout the period over which you pay it back and so the interest you owe decreases each month. In the end you only pay about half of the interest given by the simple interest formula. Adapted from Los Medanos College Intermediate Algebra Class Activities Amount Owed ($)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Linear Equations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
Algebra
ISBN:
9780134463216
Author:
Robert F. Blitzer
Publisher:
PEARSON
Contemporary Abstract Algebra
Contemporary Abstract Algebra
Algebra
ISBN:
9781305657960
Author:
Joseph Gallian
Publisher:
Cengage Learning
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra And Trigonometry (11th Edition)
Algebra And Trigonometry (11th Edition)
Algebra
ISBN:
9780135163078
Author:
Michael Sullivan
Publisher:
PEARSON
Introduction to Linear Algebra, Fifth Edition
Introduction to Linear Algebra, Fifth Edition
Algebra
ISBN:
9780980232776
Author:
Gilbert Strang
Publisher:
Wellesley-Cambridge Press
College Algebra (Collegiate Math)
College Algebra (Collegiate Math)
Algebra
ISBN:
9780077836344
Author:
Julie Miller, Donna Gerken
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS