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BabaBlast [244]
3 years ago
9

In the 1980s an average mortgage rate was around 18.5 how much less per month would a 150000 30 year mortgage by today if the cu

rrent rate were 5 %
Mathematics
1 answer:
lianna [129]3 years ago
7 0

Answer:

  $1516.69 per month less

Step-by-step explanation:

The formula for the monthly payment A on a loan of principal P, annual rate r, for t years is ...

  A = P(r/12)/(1 -(1 +r/12)^(-12t))

For the 18.5% loan, the monthly payment is ...

  A = 150000(.185/12)/(1 -(1 +.185/12)^(-12·30)) ≈ 2321.92

For the 5% loan, the monthly payment is ...

  A = 150000(.05/12)/(1 -(1 +.05/12)^-360) ≈ 805.23

The mortgage at 5% would be $1516.69 less per month.

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<u>Solution:</u>

Given, a term a(19) = 135 and common difference d = 15

We have to find the explicit formula.

Now, we know that, a(n) = a + (n – 1)d where a(n) is nth term, a is first term, d is common difference,

So, for a(19)  

\begin{array}{l}{\rightarrow a(19)=a+(19-1) 15} \\\\ {\rightarrow 135=a+18 \times 15} \\\\ {\rightarrow a=135-270} \\\\ {\rightarrow a=-135}\end{array}

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So, in our problem, expression for finding nth term is a + (n – 1)d  

\begin{array}{l}{\rightarrow-135+(n-1) 15} \\\\ {\rightarrow-135+15 n-15} \\\\ {\rightarrow 15 n-150} \\\\ {\rightarrow 15(n-10)}\end{array}

Hence, the explicit formula is a(n) = 15(n – 10).

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