Question

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Answer 1

well P is the amount to be repaid after the $12900 is paid

and it doesn't matter the amount

you need to calculate the value of

\[(1 + \frac{r}{100})^n\]

for each dealership... the smaller value is the better deal... less to pay on the balance owning

Answer 2

P = total - moneyDown

r = rate
n(or t) = cycles passed (number of times interest is added)

plug these values into the equation and find the value that multiplies P less.

ex:

I owe $300 with 10% interest compounded monthly for 2 years\[A = 300(1+\frac{ 10 }{100 })^{24}\]

Answer 3

well you don't owe 12900, you owe x-12900, but assuming the cost of both trucks is the same and you're only calculating interest, you can leave P as just P.

but yes the rest of the equation is right, you get
\[A = P(1+\frac{ 7 }{ 100 })^{4}\] assuming it's compounded yearly.

what you want to do is choose the equation that multiplies P the least.
Does that make sense?

Answer 4

compare it to the other option, 5% for 6 years

Answer 5

yes, now which is less, 1.07^4 or 1.05^6?

Answer 6

1.07^4 = 1.31
1.05^6 = 1.34

Answer 7

but essentially those values are going to be multiplied by P. To pay less you want to multiply P by a smaller number

Answer 8

no, when approaching the problem you were looking for the coefficient of P. That value is everything after P. You simplified the coefficients to 1.07^4 and 1.05^6.

when given 3x and 5x, you know that 3x is smaller simply because the coefficient is smaller. (assuming x is positive)

same goes for this problem

Answer 9

sorry not everything after, only in this case, a coefficient is what is multiplied by a variable

Answer 10

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