Problem 2: Monthly Payment for a Home If you borrow $120,000 at an APR of 6% in order to buy a home, and if the lending institution compounds interest continuously, then your monthly payment M = M(Y), in dollars, depends on the number of years you take to pay the loan. The relationship is given by M = d. 120,000(e0.005 - 1) 1-e-0.06Y Sketch a graph of M versus Y. In choosing a graphing window, you should note that a home mortgage rarely extends beyond 30 years. silt worla Spano bataatong alt b. Express in functional notation your monthly payment if you pay off the loan in 30 years, and then find that value. Show the substitution. M=120.0001€0.005 + y = 20 1-e-0.069 M= 120.000 (e.0005-1) 1-6-0.06x30 -601.2=720-618 0.8347 vo sans c. Is the graph concave up or concave down? Explain your answer in practical terms. in the graph, it shows that the monthly payment is decreasing that shows that the cancare is down . If I pay my loan off in 20years, then the vallucc wand b 120.618 dollars. Calculate the average decrease per year in your monthly payment from a loan period of 25 to a loan period of 30 years. Show all work.
Problem 2: Monthly Payment for a Home If you borrow $120,000 at an APR of 6% in order to buy a home, and if the lending institution compounds interest continuously, then your monthly payment M = M(Y), in dollars, depends on the number of years you take to pay the loan. The relationship is given by M = d. 120,000(e0.005 - 1) 1-e-0.06Y Sketch a graph of M versus Y. In choosing a graphing window, you should note that a home mortgage rarely extends beyond 30 years. silt worla Spano bataatong alt b. Express in functional notation your monthly payment if you pay off the loan in 30 years, and then find that value. Show the substitution. M=120.0001€0.005 + y = 20 1-e-0.069 M= 120.000 (e.0005-1) 1-6-0.06x30 -601.2=720-618 0.8347 vo sans c. Is the graph concave up or concave down? Explain your answer in practical terms. in the graph, it shows that the monthly payment is decreasing that shows that the cancare is down . If I pay my loan off in 20years, then the vallucc wand b 120.618 dollars. Calculate the average decrease per year in your monthly payment from a loan period of 25 to a loan period of 30 years. Show all work.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Question
part A AND D ONLY
Transcribed Image Text:C.
Problem 2:
Monthly Payment for a Home
If you borrow $120,000 at an APR of 6% in order to
buy a home, and if the lending institution compounds interest continuously, then your
monthly payment M = M(Y), in dollars, depends on the number of years you take to
pay the loan. The relationship is given by
srt M =
120,000 (0.005 - 1)
1-e-0.06Y
b.
d.
a.
lugod
Sketch a graph of M versus Y. In choosing a graphing window, you should note
that a home mortgage rarely extends beyond 30 years.
silt worl2 Spario
om wor
Express in functional notation your monthly payment if you pay off the loan in
30 years, and then find that value. Show the substitution.
M = 120,0001e0.005
+y=20
If I pay my loan off in
30years, then the valluc
wand b 120.618 dollars.
1-e-0.069
M= 120.000 (e.0005-1) = 601·20 = 720-618 sit word niplex3
0.8347
to
1-6-0.06x30
Is the graph concave up or concave down? Explain your answer in practical
terms.
in the graph, it shows that the monthly payment
is decreasing that shows that the cancare is down
Calculate the average decrease per year in your monthly payment from a loan
period of 25 to a loan period of 30 years. Show all work.
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