Question

Mr. Dawson plans to finance the loan of his choice for 30 years. The least affordable loan option for Mr. Dawson is option .
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Answer 1

Option C is the correct answer

So let's help Mr. Dawson to demonstrate why.

The functions model the cost of the plot of land after x years, so we need to find the cheaper option. Therefore:

Cost of the option A:

$f(30)=8000(1+ \frac{0.15}{12})^{12\times30}=\ 700327.96$

Cost of the option B:

$g(30)=700\times30+8000=\ 29000$

Cost of the option C: This is the cheaper option

$h(30)=30^{2}+400\times30+8000=\ 20900$

Answer 2

Option C is correct. The person above me explained everything right.