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: A Modeling Approach to College Algebra (MindTap Course List)
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