(A) A family has an $85,000, 30-year mortgage at 9.6% compounded monthly. Show that the monthly payments are $720.94.

(B) Explain why the equation

gives the unpaid balance of the loan after x years.

(C) Find the unpaid balance after 5 years, after 10 years, and after 15 years.

(D) When does the unpaid balance drop below half of the original $85,000?

(E) Solve part (D) using graphical approximation techniques on a graphing calculator (see Fig. 3).

Transcribed Image Text:

1- (1.008) (1.008)-12(30-x) 0.008 y = 720.94-