Find the monthly payment on a loan of $18000 over 24 months for Plan A and Plan B.
Answer to Problem 60PPE
Plan A is less costly and it is
Explanation of Solution
Given:
The formula below gives the monthly payment m on a loan as a function of the amount borrowed A, the annual rate of interest r(expressed as a decimal) and the number of months n of the loan. Use this formula and a calculator.
Concept Used:
For Plan A: Substitute the value: A = $18000; r = 0% and n = 48.
For plan B: Substitute the value: A = $16000; r = 7.9% = 0.079 and n = 48.
Calculate for ‘m ‘
Calculation:
Plan B:
The formula:
For Plan B: m = $389.84
For plan A: m = $375
Plan A is less costly and it is
Thus, Plan A is less costly and it is
Chapter 11 Solutions
High School Math 2015 Common Core Algebra 1 Student Edition Grade 8/9
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