My Math Forum Loan outstanding to number of payments made

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 July 7th, 2011, 09:09 PM #1 Newbie   Joined: May 2011 Posts: 28 Thanks: 0 Loan outstanding to number of payments made From the following sets of numbers derive an equation that relates the amount of a loan outstanding to the number of payments made: Loan outstanding 5000 / 4000 / 3000 / 2000 / 1000 / 0 Payments made 4 / 8 / 12 / 16 / 20 / 24 What is the best way to approach this?
 July 7th, 2011, 09:18 PM #2 Senior Member     Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 520 Math Focus: Calculus/ODEs Re: Loan outstanding to number of payments made One way is to use the point-slope formula since both quantities change linearly: Let O be the outstanding amount and n be the number of payments made: We can use the point (O,n) = (0,24) and the slope $m=\frac{\Delta O}{\Delta n}=\frac{1000-0}{20-24}=-\frac{1000}{4}=-250$ thus: $O=-250(n-24)=-250n+6000$ $O=6000-250n$
 July 7th, 2011, 09:46 PM #3 Newbie   Joined: May 2011 Posts: 28 Thanks: 0 Re: Loan outstanding to number of payments made Thanks, I am starting to work with slopes and rate of change now so that is very helpful!
 July 7th, 2011, 09:50 PM #4 Senior Member     Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 520 Math Focus: Calculus/ODEs Re: Loan outstanding to number of payments made Cool! I was hoping that was why this question was given to you!

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