You plan to take out a 30-year fixed rate mortgage for $ 200,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P( 2) equ...
You plan to take out a 30-year fixed rate mortgage for $ 200,000. Let P(r) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P( 2) equals = 739.24 and (b) P'(2) equals = 100.01 .
(a) Interpret P (2) equals = 739.24. Select the correct answer below.
A. If the interest rate on the mortgage is 3%, the monthly payment will be $ 739.24
B. If the interest rate on the mortgage is 2%, the monthly payment will be $ 739.24
C. If the interest rate on the mortgage is 3%, the monthly payment will be $ 100.01
D. If the interest rate on the mortgage is 2%, the monthly payment will be $ 100.01
(b) Interpret P′(2) equals = 100.01. Select the correct answer below.
A. If the interest rate increases from 2% to 3%, the monthly payment will increase by approximately $ 100.01
B. If the interest rate decreases from 3% to 2%, the monthly payment will be approximately $ 739.24
C.If the interest rate increases from 2% to 3%, the monthly payment will decrease by approximately $ 100.01
D. If the interest rate decreases from 3% to 2%, the monthly payment will increase by approximately $ 739.24
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