Car Financing A couple wants to buy a $35,000 car and can borrow the money for the purchase at 8%, paying it off in 3, 4, or 5 years. The table below gives the monthly payment and total cost of the purchase (including the loan) for each of the payment plans.
t(years) | Monthly Payment ($) | Total Cost ($) |
3 | 1096.78 | 39,484.08 |
4 | 854.46 | 41,014.08 |
5 | 709.68 | 42,580.80 |
(Source: Sky Financial Mortgage Tables)
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 and loan.
a. Find P(3) and write a sentence that explains its meaning.
b. What is the total cost of the purchase if it is financed over 5 years? Write the answer using function notation.
c. What is t if C(t) = 41,014.08?
d. How much money will the couple save if they finance the car for 3 years rather than 5 years?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.