Solved: Home Mortgage A $120,000 home mortgage for 30

Chapter , Problem 5.5.58

(choose chapter or problem)

Home Mortgage A $120,000 home mortgage for 30 years at has a monthly payment of $839.06. Part of the monthly payment covers the interest charge on the unpaid balance, and the remainder of the payment reduces the principal. The amount paid toward the interest is and the amount paid toward the reduction of the principal is In these formulas, is the size of the mortgage, is the interest rate, is the monthly payment, and is the time (in years). (a) Use a graphing utility to graph each function in the same viewing window. (The viewing window should show all 30 years of mortgage payments.) (b) In the early years of the mortgage, is the greater part of the monthly payment paid toward the interest or the principal? Approximate the time when the monthly payment is evenly divided between interest and principal reduction. (c) Repeat parts (a) and (b) for a repayment period of 20 years M $966.71. What can you conclude?