You borrowed $5,000 from your parents to purchase a used car. You have agreed to make payments of $250 per month plus an additional 1% interest on the unpaid balance of the loan.
a. Is this problem an example of a geometric series or an arithmetic series? Support your answer mathematically by applying the concepts from this unit.

b. Find the first year’s monthly payments that you will make and the unpaid balance after each month.

c. Find the total amount of interest paid over the term of the loan.

Question

You borrowed $5,000 from your parents to purchase a used car. You have agreed to make payments of $250 per month plus an additional 1% interest on the unpaid balance of the loan.
a.	Is this problem an example of a geometric series or an arithmetic series? Support your answer mathematically by applying the concepts from this unit.

b.	Find the first year’s monthly payments that you will make and the unpaid balance after each month.

c.	Find the total amount of interest paid over the term of the loan.

anonymous · Answer

I think it's a geometric series, but I cannot figure out what equation fits this situation

anonymous · Answer

Pe^rt

anonymous · Answer

oh thanks! it's simpler than i thought

anonymous · Answer

5000(250)^1(t)? is that right, i still can't figure this out, it's been awhile since i've used this type of equation if you couldn't tell

anonymous · Answer

i understand part (a) but need help with part (b) and (c) now

anonymous · Answer

5000e^t(.01) i figured it out nevermind