Your Monthly Payment, C(s, T), on a Car Loan Depends

question 29

Multiple Choice

Your monthly payment, C(s, t) , on a car loan depends on the amount, s, of the loan (in thousands of dollars) , and the time, t, required to pay it back (in months) .What is the meaning of C(7, 48) = 250?

• A)If you borrow $7,000 from the bank for 48 months (4 year loan), your monthly car loan payment is $250.
• B)If you borrow $4,000 from the bank for 48 months (7 year loan), your monthly car loan payment is $250.
• C)If you borrow $250 from the bank for 48 months (4 year loan), your monthly car loan payment is $7.
• D)If you borrow $7 from the bank for 48 months (4 year loan), your monthly car loan payment is $250.

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Definitions:

Credit Availability

The ease with which individuals or companies can obtain loans or other forms of credit from financial institutions.

Income Level

The term income level refers to the amount of money earned by an individual, household, or economic entity within a specific period, often categorized for statistical analysis.

Large Denomination

Refers to currency or financial instruments that are issued in large values, typically used in major transactions or as a store of value.

Time Deposit

A deposit in a financial institution that requires notice of withdrawal or must be left for some fixed period of time.