Use the Bisection method to solve problem #6 on section 3.1 (page 95). 1. Pick an...

  

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Use the Bisection method to solve problem #6 on section 3.1 (page 95). 1. Pick an appropriate starting interval for this problem. How many iterations does it take the Bisection method to obtain a solution that is accurate to within 10-5? 2. What is the approximate value for the interest rate r? Compare your solution to the one you would get if you use Matlab built-in function fzero. 6. If you borrow L dollars at an annual interest rate of r (in decimal form, so 5% is written as 0.05), for a period of m years, then the size of the monthly payment, M, is given by the annuity equation 12M L = - [1-(1+r/12)-¹2m]. T The author needs to borrow $150,000 to buy the new house that he wants, and he can only afford to pay $600 per month. Assuming a 30-year mortgage, use the bisection method to determine what interest rate he can afford to pay. (Should the author perhaps find some rich relatives to help him out here?) Use the Bisection method to solve problem #6 on section 3.1 (page 95). 1. Pick an appropriate starting interval for this problem. How many iterations does it take the Bisection method to obtain a solution that is accurate to within 10-5? 2. What is the approximate value for the interest rate r? Compare your solution to the one you would get if you use Matlab built-in function fzero. 6. If you borrow L dollars at an annual interest rate of r (in decimal form, so 5% is written as 0.05), for a period of m years, then the size of the monthly payment, M, is given by the annuity equation 12M L = - [1-(1+r/12)-¹2m]. T The author needs to borrow $150,000 to buy the new house that he wants, and he can only afford to pay $600 per month. Assuming a 30-year mortgage, use the bisection method to determine what interest rate he can afford to pay. (Should the author perhaps find some rich relatives to help him out here?)

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Answer Loan amount Monthly Interest Loan tenor Monthly payment 150000 r 30 years ... View the full answer