A contour diagram of the monthly payment on a 5 year car loan as a function of t

Question

A contour diagram of the monthly payment on a 5 year car loan as a function of the interest rate and and the amount you borrow is shown in the figure below. If the interest rate is 13% and you borrow $6000, what is your approximate monthly payment? (Estimate to within 5 dollars of the actual amount.) If interest rates drop to 11%, approximately how much more can you borrow without increasing your monthly payment? (Estimate to within 100 dollars of the actual amount.) Suppose your monthly payment is $120. Complete the table below showing how much you can borrow, without increasing your monthly payment, as a function of the interest rate. (Estimate to within 100 dollars of the actual amount.)

Explanation / Answer

a. $ 140 b. $ 400 c. $7000 @ 1%, $6666.66 @ 3%, $6333.33 @ 5%, $6000 @ 7%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.