The total interest u paid on a home mortgage of P dollars at interest rate r (in

Question

The total interest u paid on a home mortgage of P dollars at interest rate r (in decimal form) for t years is 0.04t 12t-1 u 230,000 0.04/2 Consider a $230,000 home mortgage at 4.0%. (a) Use a graphing utility to graph the total interest function. O Maple Generated PlO Maple Generated Plot OMaple Generated Plt O Maple Generated Plot (b) Approximate the length of the mortgage for which the total interest paid is the same as the size of the mortgage. years Is it possible that some people are paying twice as much in interest charges as the size of the mortgage? O Yes O No

Explanation / Answer

b) the required time is approximately 40 years.

c) Yes, it is possible that some people are paying twice as much in interest charges as the size of the mortgage.

In this case the required time will be approximately 71 years.

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