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The monthly payment for a home loan is given by a function f(P,r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.085. If P = 500000, r=0.085, and N = 276(a 23-year loan), then the monthly payment is f(500000, 0.085, 276) = 788. Furthermore, with these values we have af OP Estimate: (a) The change in monthly payment per 2000 increase in loan principal: Af dollars = 0.0077, of = 8006, dr (b) The change in monthly payment if the interest rate changes from r = 0.085 to r = 0.075: Af - dollars (c) The change in monthly payment if the length of the loan changes from 23 to 25 years: Af dollars of ON =-1.6048

The monthly payment for a home loan is given by a function f(P,r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.085. If P = 500000, r=0.085, and N = 276(a 23-year loan), then the monthly payment is f(500000, 0.085, 276) = 788. Furthermore, with these values we have af OP Estimate: (a) The change in monthly payment per 2000 increase in loan principal: Af dollars = 0.0077, of = 8006, dr (b) The change in monthly payment if the interest rate changes from r = 0.085 to r = 0.075: Af - dollars (c) The change in monthly payment if the length of the loan changes from 23 to 25 years: Af dollars of ON =-1.6048

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
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L8
The monthly payment for a home loan is given by a function f(P,r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.085. If P = 500000, r = 0.085, and N = 276(a 23-year loan), then the monthly payment is f(500000, 0.085, 276) = 788. Furthermore, with these values we have af ӘР Estimate: (a) The change in monthly payment per 2000 increase in loan principal: Afa dollars = 0.0077, of Ər = 8006, (b) The change in monthly payment if the interest rate changes from r = 0.085 to r = 0.075: Afa dollars (c) The change in monthly payment if the length of the loan changes from 23 to 25 years: dollars Af af ƏN : -1.6048
Transcribed Image Text:The monthly payment for a home loan is given by a function f(P,r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.085. If P = 500000, r = 0.085, and N = 276(a 23-year loan), then the monthly payment is f(500000, 0.085, 276) = 788. Furthermore, with these values we have af ӘР Estimate: (a) The change in monthly payment per 2000 increase in loan principal: Afa dollars = 0.0077, of Ər = 8006, (b) The change in monthly payment if the interest rate changes from r = 0.085 to r = 0.075: Afa dollars (c) The change in monthly payment if the length of the loan changes from 23 to 25 years: dollars Af af ƏN : -1.6048
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