how do you do this question?

Note: 1. This does not strike me a as Calculus problem.
2. Please share your initial attempts as per forum rules.

With plan B Jonah pays 1200*36 = 43200 which is higher than what he would pay with plan B
However, by paying only paying 1200 per month, he can earn interest on the remainder of the money.

The challenge now is to setup an expression correctly for the total interest he earns on the original 35000 over 36 months.
[math]A = P e^{rt}[/math]is the formula for total amount, A (principal plus interest) if prinicipal P earns interest @ r continuously for time t. Be careful though principal changes every month.

If the earned interest is greater than the difference between Plan A and Plan B total payments, Plan B is more lucrative.
 
Last edited:
You must log in or register to reply here.
Top