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# Suppose C(r) is the total cost of paying off a car loan borrowed at an annual interest rate of r%. What are the units of C'(r)? What is the practical meaning of C'(r)? What is its sign?

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$C(r)$ is the total cost of paying off a car loan borrowed at an annual interest rate of $r$ percent.

Units of $C'(r)$ are dollars per percent.

The practical meaning of $C'(r)$ depicts the additional amount needed to pay off the loan when the interest rate is increased by 1 percent.

The sign of $C'(r)$ is positive because increasing the interest rate will increase the amount that it costs to pay off the loan.

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