You plan to taxo out a 30 ya fond ate mortgage fo $150.00 Let P r be your monthi

Question

You plan to taxo out a 30 ya fond ate mortgage fo $150.00 Let P r be your monthiy pay (a) P(2)- 554.43 and (b) P'(2) 75.01 ont if the intorostato s % por year , compounded monty Into prot the o ations (a) Interpret P(2)-554.43. Select the correct answer below A. . lfthe interest rato on the mortgage is 3%, the monthly puymont wil bo rthe interest rate on the mortgage is 2%, te monthly payment wil be $56443. $75.01 C. If the interest rate on the mortgage is 3%, the monthly payment wil bo S55443 D. lf the interest rate on the mortgage is 2%. the monthly payment wil be S75.01. b) Interpret P'(2)-75.01. Select the correct answer below A. If the interest rate decreases form 3% to 2%, the monthly pnyment will be approximately $55443. . If the interest rate decreases from 3% to 2%, the monthly payment will increase by approximately S564 43. OC. lfthe interest rate increases from 2% to 3%, te monthly payment will increase by approximately S75 01. OD, if the interest rate increases from 2% to 3%, the monthly payment wil decrease by approximately S7501.

Explanation / Answer

a) P(r) represents the monthly payment for r% rate of interest. So,

Option B is correct.

b) Option C is correct.

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