6
QuizMultiple Choice
Modeling with Rational Functions
Question 6 of 7 • KISD SS-3391B-Algebra II Honors B
Peter wants to borrow $3,000. He has two payment plans to choose from. Plan A charges 4% interest over 6 years. Plan B charges 5% interest over 4 years. The formula can be used to calculate the monthly payment, m, where P is the principle amount borrowed, r is the interest rate expressed as a decimal, and t is the time of the loan, in years. Which statement best compares the plans?
Answer
A
Plan A has a monthly payment of about $23 less and a total interest charge of $120 less than plan B.B
Plan A has a monthly payment of about $23 less and a total interest charge of $120 more than plan B.C
Plan A has a monthly payment of about $23 more and a total interest charge of $120 more than plan B.D
Plan A has a monthly payment of about $23 more and a total interest charge of $120 less than plan B.