A consumer is considering two different purchasing options for the car of their choice. The first option, which is leasing, is described by the equation 250x - y + 4000 = 0 where x represents the number of months of ownership and y represents the total paid for the car after ‘x' months. The second option, which is the financing option, will cost $400 for 0 months of ownership, (0,400), and $4400 for 10 months of ownership, (10, 4400). Part A: Find the equations, in slope/y-intercept form, for each of the purchasing options. Explain the significance of the slope and y-intercept for each purchasing option.

The slope of the second option(financing) is greater than the first option(leasing) meaning that the monthly payments for the financing option are greater than the monthly payments of leasing.

The y-intercept of the first option(leasing) is greater than the y-intercept of the second option(financing) meaning that the initial payment of the first option is greater than the initial payment of the second option.

Step-by-step explanation:

The general slope-intercept form is given by

[tex]y = mx + b[/tex]

First option leasing:

The given equation is

[tex]250x - y + 4000 = 0[/tex]

We need to convert this equation into the slope-intercept form.

[tex]y = 250x + 4000[/tex]

where x represents the number of months of ownership and y represents the total amount paid for the car after ‘x' months.

The slope of the equation is 250 which represents the rate at which the value of y is increasing with respect to x.

When x = 0 then y = 4000 which represents the initial payment.

Second option financing:

We are given two points,

[tex](x_1, y_1) = (0,400)[/tex]

[tex](x_2, y_2) = (10,4400)[/tex]

The slope of the equation(m) is given by

[tex]m = \frac{y_2 - y_1}{x_2 - x_1} \\\\m = \frac{4400 - 400}{10 - 0} \\\\m = \frac{4000}{10} \\\\m = 400[/tex]

To find the value of the y-intercept (b), substitute any of the given point into the slope intercept equation

[tex]y = mx + b \\\\y = 400x + b \\\\400 = 400(0) + b \\\\b = 400[/tex]

So the equation of the second option is

[tex]y = 400x + 400[/tex]

The slope of the equation is 400 which represents the rate at which the value of y is increasing with respect to x.

When x = 0 then y = 400 which represents the initial payment.

Comparison in terms of slope:

The slope of first option leasing = 250

The slope of second option financing = 400

The slope of the second option(financing) is greater than the first option(leasing) meaning that the monthly payments for the financing option are greater than the monthly payments of leasing.

Comparison in terms of y-intercept:

The y-intercept of first option leasing = 4000

The y-intercept of second option financing = 400

The y-intercept of the first option(leasing) is greater than the y-intercept of the second option(financing) meaning that the initial payment of the first option is greater than the initial payment of the second option.