When a homeowner has a 25-year variable-rate mortgage loan, the monthly payment R is a function of the amount of the loan A and the current interest rate i (as a percent); that is, R = f(A, i). Interpret each of the following. (a) f(150,000, 8) = 773.89 For a loan of $150,000 at 8% interest, the monthly payment is $773.89. For a loan of $150,000 at 7.7389% interest, 800 monthly payments would be required to pay off the loan. O For a loan of $150,000 at 8% interest, 773.89 monthly payments would be required to pay off the loan. O For a loan of $150,000 at 7.7389% interest, the monthly payment is $800. af (b) (150,000, 8) = 68.74 дi O For a loan of $150,000 at 8% interest, an 8% change in the interest rate would result in a $68.74 change in the monthly payment. O For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $8.00 change in the monthly payment. O For a loan of $150,000 at 8% interest, a 1% change in the interest rate would result in a $68.74 change in the monthly payment. For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $80.00 change in the monthly payment.
When a homeowner has a 25-year variable-rate mortgage loan, the monthly payment R is a function of the amount of the loan A and the current interest rate i (as a percent); that is, R = f(A, i). Interpret each of the following. (a) f(150,000, 8) = 773.89 For a loan of $150,000 at 8% interest, the monthly payment is $773.89. For a loan of $150,000 at 7.7389% interest, 800 monthly payments would be required to pay off the loan. O For a loan of $150,000 at 8% interest, 773.89 monthly payments would be required to pay off the loan. O For a loan of $150,000 at 7.7389% interest, the monthly payment is $800. af (b) (150,000, 8) = 68.74 дi O For a loan of $150,000 at 8% interest, an 8% change in the interest rate would result in a $68.74 change in the monthly payment. O For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $8.00 change in the monthly payment. O For a loan of $150,000 at 8% interest, a 1% change in the interest rate would result in a $68.74 change in the monthly payment. For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $80.00 change in the monthly payment.
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Transcribed Image Text:When a homeowner has a 25-year variable-rate mortgage loan, the monthly payment R is a function of the amount of the
loan A and the current interest rate i (as a percent); that is, R = f(A, i). Interpret each of the following.
(a)
f(150,000, 8) = 773.89
For a loan of $150,000 at 8% interest, the monthly payment is $773.89.
For a loan of $150,000 at 7.7389% interest, 800 monthly payments would be required to pay off the loan.
For a loan of $150,000 at 8% interest, 773.89 monthly payments would be required to pay off the loan.
For a loan of $150,000 at 7.7389% interest, the monthly payment is $800.
af
(b)
(150,000, 8) = 68.74
O For a loan of $150,000 at 8% interest, an 8% change in the interest rate would result in a $68.74 change in
the monthly payment.
For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $8.00 change
in the monthly payment.
For a loan of $150,000 at 8% interest, a 1% change in the interest rate would result in a $68.74 change in
the monthly payment.
For a loan of $150,000 at 8% interest, a 6.874% change in the interest rate would result in an $80.00
change in the monthly payment.
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