You are going to purchase a new car, but being a responsible consumer means doing a little bit of research first. First, you find the vehicle you are purchasing and its price. Vehicle: Chevy Volt Price: $39,145 Current interest rate: 3% Using the function A (t) = P (1+r/n) ^nt create the function that represents your new car loan that is compounded monthly. The principle will be the price of the vehicle you selected, not how much you are putting down.
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