Suppose in a certain community, there will be M(r) thousand refinanced mortgages when the 30-year fixed mortgage rate is r%, where M(r) 1 + 0.05r for 1 r≤8 1 + 0.004,² a. For what values of r is M(r) increasing? b. For what interest rate r is the number of refinanced mortgages maximized? What is this maximum number?
Suppose in a certain community, there will be M(r) thousand refinanced mortgages when the 30-year fixed mortgage rate is r%, where M(r) 1 + 0.05r for 1 r≤8 1 + 0.004,² a. For what values of r is M(r) increasing? b. For what interest rate r is the number of refinanced mortgages maximized? What is this maximum number?
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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A manufacturer estimates that when q units of a certain commodity are produced, the profit obtained is P(q) thousand dollar share. Can please solve this ASAP. Please show me the steps I have no idea how. I am doing a practice problem.
Transcribed Image Text:Suppose in a certain community, there will be
M(r) thousand refinanced mortgages when the
30-year fixed mortgage rate is r%, where
M(r)
1 + 0.05r
for 1 r≤8
1 + 0.004,²
a. For what values of r is M(r) increasing?
b. For what interest rate r is the number of
refinanced mortgages maximized? What is this
maximum number?
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