Answer:
After 3 months, Simon will be able to pay off his loan with the money he holds at his savings account.
Step-by-step explanation:
ending loan's principal balance = beginning loan's principal balance - number of months x $300
or we can simplify it: l₁ = l₀ - 300x ⇒ l₁ = 3,300 - 300x
l₁ = ending loan's principal balance
x = number of months
ending savings account balance = beginning savings account balance + number of months x $600
or we can simplify it: s₁ = s₀ + 600x ⇒ s₁ = 1,000 + 600x
s₁ = ending savings account balance
x = number of months
account balances for months
month 1 month 2 month 3 month 4
boat loan $3.000 $2,700 $2,400 $2,100
savings account $1,600 $2,200 $2,800 $3,400
