Question

michele

Answer 1

Buying a New Car!

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%

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.
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.
Lastly, you decide to keep track of your loan four times a month instead of monthly. Solve for the adjusted interest rate. Remember to use the formula
A( t) =P\[\left[ (1+(r/n) \right]^{1/c} \] ^cnt where c=4
When solving for the adjusted interest rate, be sure to set it equal to 1 + (r/n)

Answer 2

@Michele_Laino please help

Answer 3

Identify what letter stands for what
Like P stands for?

Answer 4

i don't know what

Answer 5

P is the initial amount the principal aka initial price here

Answer 6

yes ok

Answer 7

so you know what to replace P with

do you know what r means?

Answer 8

P= 39,145
r=3

Answer 9

I thought r was 3% not 300%

Answer 10

3% yes ok now for answer is?

Answer 11

can you write 3% as a decimal ?

Answer 12

decimal is 0.3 but what for answer how do i say?

Answer 13

.3 is 30%

Answer 14

I'm sorry I don't know your answer since I'm not good in financial mathematics

Answer 15

00.3

Answer 16

that is still 30%

Answer 17

michele no answer from you?

Answer 18

I'm not good in financial mathematics @sallyfield888

Answer 19

\[3 \text{ %}=3 \cdot \frac{1}{100}=?\]

Answer 20

3/100 fraction

Answer 21

ok I guess you don't want to write as decimal
you can leave it as a fraction I suppose

Answer 22

Ok now do you know what the n represents?

Answer 23

what is decimal. decimal is good

Answer 24

it is what I been trying to get you to write 3%

Answer 25

as
but you keep writing it as 3 or .3
which neither of those is correct

Answer 26

a/100
=.0a

Answer 27

you are dividing by 100 you move the decimal over twice

Answer 28

3/100=.03

Answer 29

so 3%=3/100=.03

Answer 30

3% is .03 yes ok good

Answer 31

anyways do you know what the n stands for?

Answer 32

oh no

Answer 33

the number of compoundings per year

I'm surprised you don't have any of these meanings in your notes

Answer 34

no no notes

Answer 35

anyways now you just plug all of the info given to you in your formula above and you are done

Answer 36

what do say for answer freckle

Answer 37

replace the P , the n , the r with what you were given

Answer 38

help me through please freckle

Answer 39

@TheSmartOne help me through please

Answer 40

you told me you were going to replace P with 39,145 and r with .03
and n with the number of compoundings you have per year which was what?

Answer 41

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.
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.
Lastly, you decide to keep track of your loan four times a month instead of monthly. Solve for the adjusted interest rate. Remember to use the formula
A( t) =P

Answer 42

do you not remember this formula that you gave me:
A( t) =P( 1+(r/n))^nt
?

Answer 43

do you see the P, the r, and the n?

Answer 44

you know we you are going to replace the P with 39145
and the r with .03
and the n with the number of compounding that happen per year

Answer 45

it is compounded monthly
how many months are in a year?