SOLUTION: I bought a yacht for QR 500,000 including the interest to be paid in 5 years. I pay the down payment of QR 200,000 and I need to pay QR 15,000 per month. What will be the linear eq

Question 473063: I bought a yacht for QR 500,000 including the interest to be paid in 5 years. I pay the down payment of QR 200,000 and I need to pay QR 15,000 per month. What will be the linear equation that will represent the situation.
Pleaseeee reply asap.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the present value of your loan is 500,000.
it needs to be paid in 5 years.
you down payment is 200,000.
you need to pay 15,000 each month for the next 5 * 12 = 60 months.
let y equal the amount that you have paid off on the loan.
let x = the number of months you have to pay off the loan.
your equation should be y = 15,000 * x + 200,000
when x is 0, y is equal to 200,000 which means that your down payment was 200,000.
when x is 1, y would be equal to 215,000 which means you have paid off 200,000 down payment plus 15,000 first payment.l
when x is 2, y would be equal to 230,000 which means you have paid off 200,000 down payment plus 2 months of payments.
I will make everything in thousands so the legend on your graph won't be so cluttered.
your equation is y = 15*x + 200.
your graph looks like this:

the horizontal lines on the graph are at y = 200, y = 500, y = 1100.
this corresponds to x = 0, x = 20, x = 60
when x = 20, you will have paid a down payment of 200 plus 20*15 = 500 thousand total payments on the loan.
when x = 60, you will have paid a down payment of 200 plus 60*15 = 1,100 thousand total payments on the loan.

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