A bank offers a $25,000 loan at an interest rate of 7.7% that can be paid back over 2–10 years.
a. Write the monthly payment formula for this loan situation. Let t represent the number of years from 2 to 10 inclusive.
b. Write the total interest formula for this loan situation. Let t represent the number of years from 2 to 10 inclusive.
c. Construct a graph. Let the independent variable represent years and the dependent variable represent the interest paid.
d. Use your graph to estimate the interest for a 6½-year loan.