Mr. Dawson was given three loan options by his bank in order to purchase a plot of land. The functions below model the cost of the plot of land after x years.

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

.

Mr. Dawson plans to finance the loan of his choice for 30 years.

In order to find the least affordable loan option for Mr. Dawson, we will have to substitute x = 30 in each of the given equations and the best option would have the lowest answer.

Option A:

f (x) = 8000 (1 + 0.15/12) ¹²ˣ

Susbstituting x = 30.

f (30) = 8000 (1 + 0.15/12) ³⁶⁰

f (30) = 8000 (1 + 0.15/12) ³⁶⁰

f (30) = 8000 * 87.54

f (30) = 700,327.96

Option B:

g (x) = 700 x + 8000

Susbstituting x = 30.

g (x) = 700 (30) + 8000

g (x) = 21000 + 8000

g (x) = 29,000

Option C:

h (x) = x² + 400x + 8000

Susbstituting x = 30.

h (x) = 30² + 400 (30) + 8000

h (x) = 900 + 12000 + 8000

h (x) = 20,900

The least affordable loan option for Mr. Dawson is option C.