Question

Determine Rolanda’s best loan option in the following scenario using the exponential growth equation.

Situation: Rolanda is buying a $15,000 car and is trying to figure out which is the better financing option. She can get a five-year loan at 4.65 percent or a seven-year loan at 4.25 percent.

Answer 1

5 year

Explanation:

equations are 15000(.9535)^5 for the 5 year at 4.65

15000(.9575)^7 for the 7 year at 4.25