You take out a loan for
$16,000
with an interest rate of
0.75%
per month. At the end of each month, you make a payment of
$300
.
a. Write a recursive rule for the balance
a_(n)
of the loan at the beginning of the
n
th month.
b. How much do you owe at the beginning of the 18 th month?
c. How long will it take to pay off the loan?
d. If you pay
$350
instead of
$300
each month, how long will it take to pay off the loan? How much money will you save? Explain.