Question: Figure is a contour diagram of the monthly payment on a 5-year car loan as a function of the interest rate and the amount you borrow. The interest rate is 13% and you borrow $6000 for a used car.
(a) What is your monthly payment?
(b) If interest rates drop to 11%, how much more can you borrow without increasing your monthly payment?
(c) Make a table of how much you can borrow, without increasing your monthly payment, as a function of the interest.
