Write an Equation for the Linear Function and Use It $\mathrm { L } = 783 + 243 \mathrm {~m} ; 26$

question 54

Multiple Choice

Write an equation for the linear function and use it to answer the given question.
-You can purchase a motorcycle for $7101 or lease it for a down payment of $783 and $243 per month. Find an equation that describes how the cost of the lease depends on time. How long can
You lease the motorcycle before you've paid more than its purchase price.

• A) \(\mathrm { L } = 783 + 243 \mathrm {~m} ; 26\) months
• B) \(L = 783 + 243 \mathrm {~m} ; 32\) months
• C) \(L = 783 - 243 m ; 32\) months
• D) \(\mathrm { L } = 783 - 243 \mathrm {~m} ; 26\) months

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Definitions:

Par Value

The nominal value of a bond or stock as stated by the issuer, unrelated to its market value.

Cash Flows

The total amount of money being transferred into and out of a business, principally involving operating, investing, and financing activities.

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as an income stream for retirees.

Equal Payments

Regularly scheduled payments of the same amount, often used in the repayment of loans.