Chapter 14.1, Problem 24E

To determine

To calculate: The value of $f\left(7.25,30\right)$. If $100,000 is borrowed to purchase a home, then the monthly payment R is a function of the interest rate $i$ (expressed as a percent) and the number of years $n$ before the mortgage is paid. It is given by $R=f\left(i,n\right)=100,000\left[\frac{0.01\left(i/12\right)}{1-{\left(1+0.01\left(i/12\right)\right)}^{-12n}}\right]$. Interpret the answer.