interpret the You plan to take out a 30-year fixed rate mortgage for $225,000. L
ID: 2621295 • Letter: I
Question
interpret the You plan to take out a 30-year fixed rate mortgage for $225,000. Let P r be your monthly payment if the interest rate is 1% per year, compounded month equations (a) P(3) 948.61 and (b) P'(3) 121.35 (a) Interpret P(3)948.61. Select the correct answer below. O A. If the interest rate on the mortgage is 3%, the monthly payment will be $121.35. 0 B. If the interest rate on the mortgage is 4%, the monthly payment will be S121.35. ° C. If the interest rate on the mortgage is 3%, the monthly payment will be $948.61 D. If the interest rate on the mortgage is 4%, the monthly payment will be$94861 (b) Interpret P'(3) 121.35. Select the correct answer below. 0 A. If the interest rate decreases from 4% to 3%, the monthly payment will increase by approximately $948.61 0 B. If the interest rate increases from 3% to 4%, the monthly payment will decrease by approximately $121.35. C. If the interest rate decreases from 4% to 3%, the monthly payment will be approximately $948.61. 0 D. If the interest rate increases from 3% to 4%, the monthly payment will increase by approximately $121.35.Explanation / Answer
1.
If the interest rate on the mortgage is 3%, the monthly payment will be $948.61
2.
If the interest rate increases from 3% to 4%, the monthly payment will increase by approximately $121.35
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