You are going to purchase a new car, but being a responsible consumer means doing a little bit of research first.

First, you find the vehicle you are purchasing and its price.
Vehicle: Chevy Volt
Price: $39,145

Current interest rate: 3%

Question

You are going to purchase a new car, but being a responsible consumer means doing a little bit of research first.

First, you find the vehicle you are purchasing and its price.
Vehicle: Chevy Volt
Price: $39,145

Current interest rate: 3%

anonymous · Answer

Using the function A(t)=P(1+r/n)^nt, create the function that represents your new car loan that is compounded monthly. The principle will be the price of the vehicle you selected, not how much you are putting down.

phi · Answer

monthly means 12 times a year.  n is 12
r is the year rate as a decimal.  change 3% to a decimal
t will the the years of the loan.  3,4 or even 5 years

anonymous · Answer

So A(t) = 39,145(1+ 0.3/12)^(12t) ?

anonymous · Answer

@phi

phi · Answer

0.3 is 3/10  or 30/100  or 30%

don't you want 3% ?

anonymous · Answer

Yeah
A(t) = 39,145(1+ 0.03/12)^(12t)

anonymous · Answer

Now what do we do?

anonymous · Answer

@phi

anonymous · Answer

@whpalmer4

whpalmer4 · Answer

The problem said to create a function that represents the loan.  It looks like you did so, though I'll observe that the function represents the loan if no payments are made, and you probably won't reach the end of the loan period with the car still in your possession if you go that route :-)

anonymous · Answer

Thanks, can you help me with the last two parts of this?

whpalmer4 · Answer

What are the last two parts of this?