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The figure below is a contour diagram of the monthly payment on a 5-year car loan as a function of the interest rate and the
The figure below is a contour diagram of the monthly payment on a 5-year car loan as a function of the interest rate and the amount you borrow. The interest rate is 13% and you borrow $5000 for a used car. What is your monthly payment? $ If interest rates drop to 11%, how much more can you borrow without increasing your monthly payment? $ suppose your monthly payment is $120. Complete the table below showing how much you can borrow, without increasing your monthly payment, as a function of the interest rate
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