Algebra 1: Common Core (15th Edition)

Published by Prentice Hall
ISBN 10: 0133281140
ISBN 13: 978-0-13328-114-9

Chapter 11 - Rational Expressions and Functions - 11-2 Multiplying and Dividing Rational Expressions - Practice and Problem-Solving Exercises - Page 675: 60

Answer

The first plan is less than the second plan by an amount of $3687.31$ $Dollars$ Note, this assumes that you pay the balance off in full at the end of the loan.

Work Step by Step

Plan 1 : Fixed at 18,000 Dollars $C = 18000$ $Dollars$ Plan 2 : 7.9% interest for the discounted price for 4 years $C = (18000 - 2000)(1.079)^{4}$ $C = (16000)(1.079)^{4}$ $C\approx21687.31$ Thus, the first plan is less than the second plan by an amount of $3687.31$ $Dollars$
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