Car Prices in 2012 The National Automobile Dealers Associati

Car Prices in 2012 The National Automobile Dealers Association reported that the average retail selling price of a new vehicle was $30,303 in 2012. A person purchased a new car at the average price and financed the entire amount. Suppose that the person can only afford to pay $500 per month. Assume that the payments are made at a continuous annual rate and that interest is compounded continuously at the rate of 3.5%. (Source: The National Automobile Dealers Association, www.nada.com.) Set up a differential equation that is satisfied by the amount f(t) of money owed on the car loan at time t. How long will it take to pay off the car loan?

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