I am so confused on how to graph this please help

Mathematics

1 answer:

slavikrds [6]3 years ago

6 0

Draw graph y=3(x+4)+2 ,ignore the modulus sign first.
Flip the bottom part (below x axis) upwards (above x axis) or in other words, reflect the bottom to the top

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Jacey obtains a 30-year 6/2 ARM at 4% with a 2/6 cap structure in the amount of $224,500. What is the monthly payment during the

beks73 [17]

In this case we have an ARM fixed for 6 years and adjust after the initial first 6 years every 2 years after. The basic idea behind a ARM is that the interest changes periodically, but since our ARM is fixed for 6 years, our going to calculate the monthly payment during the initial period using the formula: $m= \frac{P( \frac{r}{12}) }{1-(1+ \frac{r}{12})^{-12t} }$
where
$m$ is the monthly payment
$P$ is the amount
$r$ is the interest rate in decimal form
$t$ is the number years

First we need to convert our interest rate of 4% to decimal form by dividing it by 100%:
$\frac{4}{100} =0.04$
We also know from our question that $P=224500$ and $t=30$ , so lets replace those values into our formula to find the monthly payment:
$m= \frac{224500( \frac{0.04}{12}) }{1-(1+ \frac{0.04}{12})^{-(12)(30)} }$
$m=1071.80$

We can conclude that the monthly payment during the initial period is $1071.58<span />

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