Problem

Mortgage A couple can afford $800 per month to purchase a home. As indicated in the table,...

Mortgage A couple can afford $800 per month to purchase a home. As indicated in the table, if they can get an interest rate of 7.5%, the number of years t that it will take to pay off the mortgage is a function of the dollar amount A of the mortgage for the home they purchase.

Amount A ($)

t(years)

40,000

5

69,000

10

89,000

15

103,000

20

120,000

30

(Source: Comprehensive Mortgage Tables [Publication No. 492], Financial Publishing Co.)

a. If the couple wishes to finance $103,000, for how long must they make payments? Write this correspondence in function form if t = f(A).


b. What is f (120,000)? Write a sentence that explains its meaning.


c. What is f (3 · 40,000)?


d. What value of A makes f(A) = 5 true?


e. Does f(3 · 40,000) = 3 · f(40,000)? Explain your reasoning.

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