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trasher [3.6K]
3 years ago
5

Molly is buying a house for $202,000. she is financing $185,500 and obtained a 30 year fixed rate mortgage with a 5.125% interes

t rate. How much are her monthly payments?
A- $1010.02
B- $1099.86
C- $12,239.53
D- $13,328.22
Mathematics
2 answers:
IRINA_888 [86]3 years ago
7 0

The value of the Financing loan is $185,500 . The Rate per month is 5.125%.

We will use the formula PV = PMT \times\frac{( 1 - ( 1+r)^{-n})}{r}

Where PV is the Present Value of financing, which is $185,500

PMT=Payment every month, which is to be found.

r=interest rate=5.125%

n=number of months in 30 years=12\times 30=360

\therefore 185,500 = PMT \times \frac{1-(1+\frac{5.125}{1200})}{\frac{5.125}{1200}} =PMT \times 183.6591

Therefore, PMT =\frac{185,500}{183.6591}=1010.02

Therefore Molly's monthly payments are $1010.02.

Thus Option A is the correct option.

KiRa [710]3 years ago
7 0
The answer is letter A.

Molly's monthly payment for 30 years is $1,010.02.
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SVETLANKA909090 [29]

Answer:

a) y=-6.254 x +75.064  

b) r =-0.932

The % of variation is given by the determination coefficient given by r^2 and on this case -0.932^2 =0.8687, so then the % of variation explained by the linear model is 86.87%.

Step-by-step explanation:

Assuming the following dataset:

Monthly Sales (Y)     Interest Rate (X)

       22                               9.2

       20                               7.6

       10                                10.4

       45                                5.3

Part a

And we want a linear model on this way y=mx+b, where m represent the slope and b the intercept. In order to find the slope we have this formula:

m=\frac{S_{xy}}{S_{xx}}  

Where:  

S_{xy}=\sum_{i=1}^n x_i y_i -\frac{(\sum_{i=1}^n x_i)(\sum_{i=1}^n y_i)}{n}  

S_{xx}=\sum_{i=1}^n x^2_i -\frac{(\sum_{i=1}^n x_i)^2}{n}  

With these we can find the sums:  

S_{xx}=\sum_{i=1}^n x^2_i -\frac{(\sum_{i=1}^n x_i)^2}{n}=278.65-\frac{32.5^2}{4}=14.5875  

S_{xy}=\sum_{i=1}^n x_i y_i -\frac{(\sum_{i=1}^n x_i)(\sum_{i=1}^n y_i){n}}=696.9-\frac{32.5*97}{4}=-91.225  

And the slope would be:  

m=\frac{-91.225}{14.5875}=-6.254  

Nowe we can find the means for x and y like this:  

\bar x= \frac{\sum x_i}{n}=\frac{32.5}{4}=8.125  

\bar y= \frac{\sum y_i}{n}=\frac{97}{4}=24.25  

And we can find the intercept using this:  

b=\bar y -m \bar x=24.25-(-6.254*8.125)=75.064  

So the line would be given by:  

y=-6.254 x +75.064  

Part b

For this case we need to calculate the correlation coefficient given by:

r=\frac{n(\sum xy)-(\sum x)(\sum y)}{\sqrt{[n\sum x^2 -(\sum x)^2][n\sum y^2 -(\sum y)^2]}}  

r=\frac{4(696.9)-(32.5)(97)}{\sqrt{[4(278.65) -(32.5)^2][4(3009) -(97)^2]}}=-0.937  

So then the correlation coefficient would be r =-0.932

The % of variation is given by the determination coefficient given by r^2 and on this case -0.932^2 =0.8687, so then the % of variation explained by the linear model is 86.87%.

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Answer:

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Hey!

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