Algebra II.3.E.30 - Buying a Car – Exit Ticket

Last updated about 4 years ago

2 questions

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.

What is the actual monthly payment for Fran’s loan?

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.