Question

Vehicle: Chevy Volt
Price: $39,145
Current interest rate: 3%
Answer: A(t) = 39,145(1+ 0.03/12)^(12t)

2.Being a smart financial planner, you want to figure out how many months it will be until your work. Note that t will be negative because the number of months will decrease the principal.

3.Lastly, you decide to keep track of your loan four times a month instead of monthly. Solve for the adjusted interest rate.

Answer 1

Kinda makes no sense?

Are you making regular payments on an existing loan? Are you saving for a future expenditure?

You A(t) is a formula for a SINGLE payment. Is that your intent?

Answer 2

The first question i already answered it and its the formula i have to solve the other two please help me im very confused

Answer 3

#2 still makes no sense. "before your work" What does that mean?

Answer 4

where you have 12m ,would you put 48?? since it's checked 4 times a month

Answer 5

I dont understand it either.

Answer 6

i will paste the full question

Answer 7

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%

Answer 8

1. 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.

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

2.Being a smart financial planner, you want to figure out how many months it will be until your principal is paid down to $10,000.00. Solve for t and show all of your work. Note that t will be negative because the number of months will decrease the principal.


3.Lastly, you decide to keep track of your loan four times a month instead of monthly. Solve for the adjusted interest rate.