Question

Mr. Dawson plans to finance the loan of his choice for 30 years. The least affordable loan option for Mr. Dawson is option .

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Answer 1

Option C is correct. The person above me explained everything right.

Answer 2

Option C is the correct answer

So let's help Mr. Dawson to demonstrate why.

The functions model the cost of the plot of land after x years, so we need to find the cheaper option. Therefore:

Cost of the option A:


`f(30)=8000(1+ (0.15)/(12))^(12*30)=\$700327.96`

Cost of the option B:


`g(30)=700*30+8000=\$29000`

Cost of the option C: This is the cheaper option


`h(30)=30^(2)+400*30+8000=\$20900`