Monthly Payment The model approximates the length of a home mortgage of $150,000 at 8%

Chapter 3, Problem 87

(choose chapter or problem)

Monthly Payment The model approximates the length of a home mortgage of $150,000 at 8% in terms of the monthly payment. In the model, is the length of the mortgage in years and is the monthly payment in dollars (see figure). (a) Use the model to approximate the lengths of a $150,000 mortgage at 8% when the monthly payment is $1100.65 and when the monthly payment is $1254.68. (b) Approximate the total amounts paid over the term of the mortgage with a monthly payment of $1100.65 and with a monthly payment of $1254.68. (c) Approximate the total interest charges for a monthly payment of $1100.65 and for a monthly payment of $1254.68. (d) What is the vertical asymptote for the model? Interpret its meaning in the context of the problem.