The Monthly Mortgage Payment in Dollars, P, for a House

question 75

Multiple Choice

The monthly mortgage payment in dollars, P, for a house is a function of three variables P = f(A, r, N) , where A is the amount borrowed in dollars, r is the interest rate, and N is the number of years before the mortgage is paid off.It is given that: $$\begin{array} { l l l } f ( 100000,7,20 ) = 775.29 , & f ( 100000,8,20 ) = 836.44 , & f ( 100000,7,25 ) = 706.77 \\f ( 120000,7,20 ) = 930.35 , & f ( 120000,8,20 ) = 1003.72 , & f ( 120000,7,25 ) = 848.13\end{array}$$ Estimate the value of $$\left. \frac { \partial f } { \partial A } \right| _ { ( 10000,7,20 ) }$$ and interpret your answer in terms of a mortgage payment.Select all answers that apply.

• A)We are currently borrowing $100,000 at 7% interest rate on a 20-year mortgage.
• B)The monthly payment will go up by approximately $0.007753 for each extra percentage point charged.
• C)The monthly payment will go up by approximately $0.007753 for each extra dollar we borrow.
• D)The monthly payment will go up by approximately $0.007753 for each extra year of the mortgage.
• E)The monthly payment will go down by approximately $0.007753 for each extra dollar we borrow.

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The absence or deficiency of something desirable or necessary.

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