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You plan to take out a 30-year fixed rate mortgage for $250,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P(7) = 1663.26 and (b) P'(7) = 167.90. (a) Interpret P(7) = 1663.26. Select the correct answer below. ○ A. If the interest rate on the mortgage is 7%, the monthly payment will be $167.90. B. If the interest rate on the mortgage is 8%, the monthly payment will be $1663.26. C. If the interest rate on the mortgage is 8%, the monthly payment will be $167.90. D. If the interest rate on the mortgage is 7%, the monthly payment will be $1663.26. (b) Interpret P'(7) = 167.90. Select the correct answer below. ○ A. If the interest rate decreases from 8% to 7%, the monthly payment will be approximately $1663.26. ○ B. If the interest rate increases from 7% to 8%, the monthly payment will decrease by approximately $167.90. ○ C. If the interest rate increases from 7% to 8%, the monthly payment will increase by approximately $167.90. ○ D. If the interest rate decreases from 8% to 7%, the monthly payment will increase by approximately $1663.26.

You plan to take out a 30-year fixed rate mortgage for $250,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P(7) = 1663.26 and (b) P'(7) = 167.90. (a) Interpret P(7) = 1663.26. Select the correct answer below. ○ A. If the interest rate on the mortgage is 7%, the monthly payment will be $167.90. B. If the interest rate on the mortgage is 8%, the monthly payment will be $1663.26. C. If the interest rate on the mortgage is 8%, the monthly payment will be $167.90. D. If the interest rate on the mortgage is 7%, the monthly payment will be $1663.26. (b) Interpret P'(7) = 167.90. Select the correct answer below. ○ A. If the interest rate decreases from 8% to 7%, the monthly payment will be approximately $1663.26. ○ B. If the interest rate increases from 7% to 8%, the monthly payment will decrease by approximately $167.90. ○ C. If the interest rate increases from 7% to 8%, the monthly payment will increase by approximately $167.90. ○ D. If the interest rate decreases from 8% to 7%, the monthly payment will increase by approximately $1663.26.

College Algebra
College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 66SE: Kyoko has 10,000 that she wants to invest. Her bankhas several investment accounts tochoose from,...
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You plan to take out a 30-year fixed rate mortgage for $250,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P(7) = 1663.26 and (b) P'(7) = 167.90. (a) Interpret P(7) = 1663.26. Select the correct answer below. ○ A. If the interest rate on the mortgage is 7%, the monthly payment will be $167.90. B. If the interest rate on the mortgage is 8%, the monthly payment will be $1663.26. C. If the interest rate on the mortgage is 8%, the monthly payment will be $167.90. D. If the interest rate on the mortgage is 7%, the monthly payment will be $1663.26. (b) Interpret P'(7) = 167.90. Select the correct answer below. ○ A. If the interest rate decreases from 8% to 7%, the monthly payment will be approximately $1663.26. ○ B. If the interest rate increases from 7% to 8%, the monthly payment will decrease by approximately $167.90. ○ C. If the interest rate increases from 7% to 8%, the monthly payment will increase by approximately $167.90. ○ D. If the interest rate decreases from 8% to 7%, the monthly payment will increase by approximately $1663.26.
Transcribed Image Text:You plan to take out a 30-year fixed rate mortgage for $250,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P(7) = 1663.26 and (b) P'(7) = 167.90. (a) Interpret P(7) = 1663.26. Select the correct answer below. ○ A. If the interest rate on the mortgage is 7%, the monthly payment will be $167.90. B. If the interest rate on the mortgage is 8%, the monthly payment will be $1663.26. C. If the interest rate on the mortgage is 8%, the monthly payment will be $167.90. D. If the interest rate on the mortgage is 7%, the monthly payment will be $1663.26. (b) Interpret P'(7) = 167.90. Select the correct answer below. ○ A. If the interest rate decreases from 8% to 7%, the monthly payment will be approximately $1663.26. ○ B. If the interest rate increases from 7% to 8%, the monthly payment will decrease by approximately $167.90. ○ C. If the interest rate increases from 7% to 8%, the monthly payment will increase by approximately $167.90. ○ D. If the interest rate decreases from 8% to 7%, the monthly payment will increase by approximately $1663.26.
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