A couple wants to buy a $30,000 car and can borrow the money for the purchase at 5%, paying it off in 3, 4, or 5 years. The

Question

A couple wants to buy a $30,000 car and can borrow the money for the purchase at 5%, paying it off in 3, 4, or 5 years. The table to the right gives the monthly payment and total cost of the purchase
(including the loan) for each of the payment plans. Suppose that when the payment is over t years, P(t) represents the monthly payment and C(t) represents the total cost for the car loan. Use this information to answer parts (a) through (d).
t                                         Monthly                Total
(years)                             Payment $              Cost $
Cost $
3                                         899.13                 32368.68
4                                        690.88                  33162.24
5                                        566.14                  33968.40
(a) Find (4) and write a sentence that explains its meaning. Select the correct choice below and fill in the answer box to complete your answer.
(A) If the car is financed over 4 years, the payment is P(4) = $____

(b) What is the total cost of the purchase if it is financed over 5 years? Write the answer using function notation. Select the correct choice below and fill in the answer box to complete your choice.
(A) C(5) = $______
(B) P(5) = $____

(c) What is t if C(t) = $33,162.24?
t = _____

(d) How much will the couple save if they finance the car for 3 years rather than 5 years?
$______

Kunduz · Accepted Answer

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