The monthly payment for a home loan is given by a function f(P,r,N) where P is the principal (theinitial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates areexpressed as a decimal: A % interest rate is denoted by r = 0.06. If P = 100000, r = 0.06, and N = 240(a20-year loan), then the monthly payment is f(100000, 0.06, 240) = 1413. Furthermore, with these valueswe haveafӘРafaf= 0.0063,= 7068,= -1.3733მუƏNEstimate:(a) The change in monthly payment per 3500 increase in loan principal:Af≈dollars(b) The change in monthly payment if the interest rate changes from r = 0.06 to r = 0.07:Af≈dollars(c) The change in monthly payment if the length of the loan changes from 20 to 23 years:Af≈dollars

In partial differentiation we differentiate function of several variable with respect to a…

Answered: The monthly payment for a home loan is…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
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