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 expressed as a decimal (a 6% interest rate is denoted by r = 0.06), and the length of the loan in months. If P = $100,000, r = 0.06, and N = 240 (a 20-year loan), then the monthly payment is f(100,000, 0.06, 240) = 716.43. Furthermore, with these values, we have af = 0.0072, af = 5,769, ar af = -1.5467. ƏN Estimate the following values. (a) The change in monthly payment per $1,000 increase in loan principal. Af = $ (b) The change in monthly payment if the interest rate increases tor = 6.5%. Af = $ (c) The change in monthly payment if the length of the loan increases to 24 years. Af = $

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Chapter2: Second-order Linear Odes
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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 expressed as a decimal (a 6% interest rate is
denoted by r = 0.06), and the length of the loan in months. If P = $100,000, r = 0.06, and N = 240 (a 20-year loan), then the monthly payment is f(100,000, 0.06, 240) = 716.43.
Furthermore, with these values, we have
af
= 0.0072,
af
= 5,769,
ar
af
= -1.5467.
ƏN
Estimate the following values.
(a) The change in monthly payment per $1,000 increase in loan principal.
Af = $
(b) The change in monthly payment if the interest rate increases tor = 6.5%.
Af = $
(c) The change in monthly payment if the length of the loan increases to 24 years.
Af = $
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 expressed as a decimal (a 6% interest rate is denoted by r = 0.06), and the length of the loan in months. If P = $100,000, r = 0.06, and N = 240 (a 20-year loan), then the monthly payment is f(100,000, 0.06, 240) = 716.43. Furthermore, with these values, we have af = 0.0072, af = 5,769, ar af = -1.5467. ƏN Estimate the following values. (a) The change in monthly payment per $1,000 increase in loan principal. Af = $ (b) The change in monthly payment if the interest rate increases tor = 6.5%. Af = $ (c) The change in monthly payment if the length of the loan increases to 24 years. Af = $
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