Concept explainers
To graph: The both model on same window.
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Explanation of Solution
Given: A $200,000 home mortgage for 30 years at 4.25% has a monthly payment of $983.88.
The amount that goes towards the interest is given by
The amount that goes towards reduction of the principle is given by
Now graph both model on same window.
To find: The time when principal and interest are same.
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Answer to Problem 60E
Explanation of Solution
Given: A $200,000 home mortgage for 30 years at 4.25% has a monthly payment of $983.88.
The amount that goes towards the interest is given by
The amount that goes towards reduction of the principle is given by
In the early years of the mortgage the interest part is more than priciple value.
Using graph to find the time when interest and principal divided equally.
At
After 13 years principal curve goes up than interest graph.
To graph: The both model on same window for new years and monthly payment.
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Answer to Problem 60E
Explanation of Solution
Given: A $200,000 home mortgage for 30 years at 4.25% has a monthly payment of $983.88.
The amount that goes towards the interest is given by
The amount that goes towards reduction of the principle is given by
In above graph, at
If compare both graph the point when interest and principal same.
If reduce the time of payment it reduce gradually.
Chapter 3 Solutions
EP PRECALC.GRAPHING APPR.-WEBASSIGN-1YR
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