Practice 6.3: Solving Exponential Equations
Use the following scenario to answer questions 1-3.
Sean purchased a new car for $21,000.00 from Best Deal car dealership. He used a
car loan to make the purchase. The loan has an interest rate of 8.5% compounded
quarterly with no payments for the first six months.
1. What type of function represents this situation?
nt
A=P(1+r) ht
2. What is the interest rate after the 8.5% interest rate is compounded quarterly?
3. What will be Sean's balance at the end of 5 years?
