Fran wants to purchase a new boat. She starts looking for a boat around $6,000.
Fran creates a budget and thinks that she can afford $250 every month for 2
years. Her bank charges her 5% interest per year, compounded monthly.
Use the information to answer the following questions.
10
1.
What is the actual monthly payment for Fran’s loan?
10
2.
If Fran can only pay $250 per month, what is the most expensive boat she can buy
without a down payment?
From EngageNY.org of the New York State Education Department. Grade Algebra II Mathematics Module 3, Topic E, Lesson 30. Internet. Available from https://www.engageny.org/resource/algebra-ii-modul...; accessed 21/Apr/2016.