math problem-Car payments are determined using simple interest. To finance your vehicle purchase you have two choices. Write two equations, one for each bank, that models the banks' loan options using x for the price of the vehicle and y to represent the total cost (price, interest and origination fees) paid on each loan. Be sure to label which equation goes with which bank.
Bank A: Finance the full price of the vehicle at 5% with an origination fee of $200 paid over 5 years.
Bank B: Finance the full price of the vehicle at 4.5% paid over 6 years (no additional fees).
A. Y = (x+200) + (x+200)*0.05*5.
B. Y = x + x*0.045*6.
Bank A:
The equation for Bank A would be:
y = (x + 200) + (x + 200) * 0.05 * 5
Bank B:
The equation for Bank B would be:
y = x + x * 0.045 * 6
To write equations that model the loan options for Bank A and Bank B, we need to consider the total cost (price, interest, and origination fees) paid on each loan.
For Bank A:
Let x be the price of the vehicle.
The interest rate is 5% or 0.05.
The origination fee is $200.
The loan is paid over 5 years.
The equation for the total cost (y) for Bank A can be written as:
y = x + (0.05 * x * 5) + 200
For Bank B:
Let x be the price of the vehicle.
The interest rate is 4.5% or 0.045.
There are no additional fees.
The loan is paid over 6 years.
The equation for the total cost (y) for Bank B can be written as:
y = x + (0.045 * x * 6)
Therefore, the two equations representing the loan options for Bank A and Bank B are:
Bank A: y = x + (0.05 * x * 5) + 200
Bank B: y = x + (0.045 * x * 6)