Steve wants to buy a new car and sees $12,000 car for which the dealership will provide 8% financing because of Steve's poor credit score. Sam has a better credit score and did some research before trying to buy his vehicle, so he was able to get a $16,000 car at 1.5% interest. Assuming the interest is compounded annually, who will pay the more at the end of the 5-year term for these car loans? Support your answer by stating the equation AND answer for BOTH Sam and Steve

5000

Step-by-step explanation:

because u have to add

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.