Question

Replace Create and Share Request Adobe PDF Dictate ange Sape Fects Styles A Se Aa Conven to SmartArt Select snde-Section- Signatures Adobe Acrabat Voice Editing Drawing Side Fert Paragraph eboard Ese Examples 10/61) A home buyer can afford to spend no more than $1500/month on mortgage payments. Suppose that the 6%, that interest is compounded continuously, interest rate and that payments are also made continuously. (a) Determine the maximum amount that this buyer can afford to borrow on a 20-year mortgage; on a 30-year mortgage. (b) Determine the total interest paid during the term of the mortgage in each of the cases in part (a). Click to add notes Nates Camments 557 PM 99 ENG 0un6/2019 aU Bocksonce Y H K LEntet A

pls answer with complete solutions using DE

Answer 1

given quandities aue Seludtion H= 0006 90 yeaves K21500 x 12 mondh 18000 Knoo hat ds/at is giren by Nouw as we ds dt s-K -400.0 D-o6S-18000 (Nouo Saloing this ds O-06-18000) dt 0-065-18000 frugue ing both Side

Jag t+9 D.06 5-18000 ) D-O6 ) Consland log (oro6-18000) . (0006180oo) 11 Constant - 3 0.060 O.060 18o00 3e0.064 + 18000 $90.0 C3eo.06t + Heree 3 i's also 18000 C-06 a Constont becaus C3 is lons tant Cye +3000ooe O06 O.064 Cye +300 00 0 1 finding using given Condlidions S(20)0 NO9 at t- 20 20-year moudage) O.06 (20) Cy e +30000 0 1.2 +300000 04 4 e (using Caleulotor 90538 Cy = Puttiy valu Cy Now n EX get 90538 eo-06t +300000

a) Nouo, at time t-o, find in ea 20-Yearr moulage Putting teo -90538 e.06 (0) S= +300000 90538 +300000 e=リ 90964 27S1=2096 42 S hauw to tind Valte o Cyfor ie 30 Stimilaly we at t-30 Year motdage Putting in E2 k 七=30 LS»O O.06 (30) e 0= Cy +300000 (using Calauladou) C4-49590 in eah Putteing this value e cu

-49590 e0* D 6 30000o S = at dime t-o finding Valuu o 30-yearr motiage Putting t-o in E get we -49590 eo.06 (0) S +300000 -49590 +300000 Ce=1) 50 410 S2-250410 S = B) Nouo, fhcling toal interest paid yeast moudage RI = 90 X 18000- 209642 RI = 503.38 tou 30-yeas mondage R2 =tXK-S RZ 30X18000- 250410 289590 Ans