You have decided to purchase a new 2014 Mini Cooper Roadster for your birthday!

The price of the roadster is $28,822 and the current interest rate is 4%. You will take out a loan to cover the cost of your purchase and will not be making a down payment.

1. Using the function A(t)=P(1+r)^t, create a function that represents your new car loan. The principle, P, will be the price of the vehicle.

2. Using the function you created in #1, determine how much money you will pay for the car if you take out a 5-year loan.

Question

You have decided to purchase a new 2014 Mini Cooper Roadster for your birthday!

 

The price of the roadster is $28,822 and the current interest rate is 4%. You will take out a loan to cover the cost of your purchase and will not be making a down payment. 


1. Using the function A(t)=P(1+r)^t, create a function that represents your new car loan. The principle, P, will be the price of the vehicle.

2.  Using the function you created in #1, determine how much money you will pay for the car if you take out a 5-year loan.

anonymous · Answer

I dont know how to answer this at all.. if somebody could show me step by step id really appreciate it