You buy a house for $210000, and take out a 30-year mortgage at 7% interest. For simplicity, assume that interest compounds continuously. A) What will be your annual mortgage payment? $ per year B) Suppose that regular raises at your job allow you to increase your annual payment by 6% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage? years

You buy a house for $210000, and take out a 30-year mortgage at 7% interest. For simplicity, assume that interest compounds continuously. A) What will be your annual mortgage payment? $ per year B) Suppose that regular raises at your job allow you to increase your annual payment by 6% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage? years

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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