A couple wants to buy a $34,000 car and can borrow the money for the purchase at 5%, paying it off in 3, 4 or 5 years. The table to the right gives the monthly payment and total cost of the purchase (including
the loan) for each of the payment plans. Suppose that when the payment is over t years, P(t) represents
the monthly payment and C(t) represents the total cost for the car loan. Use this information to answer
parts (a) through (d).
t Monthly
(years) Payment $
3 1019.02
4 783.00
5 641.63
Total
Cost $
36,684.72
37,584.00
38,497.80
a. Find P(4) and write a sentence that explains its meaning. Select the correct choice below and fill in the answer box to complete your choice.
O A. If the car is financed over 4 years, the payment is P(4) = $
OB. If the car is financed over 4 years, the total cost is P(4) = S
b. What is the total cost of the purchase if it is financed over 4 years? Write the answer using function notation. Select the correct choice below and fill in the answer
box to complete your choice.
O A. C(4) = $