A $240,000 home mortgage for 30 years at a 3.725% interest rate has a monthly payment of $1108. The models for the amount paid toward interest u and the amount paid towards the reduction in principle v are below: u = M - (M - Pr/12)(1 + r/12)12t and v = (M-Pr/12)(1+r/12)12t given P is the amount invested in the mortgage. M is the monthly payment, r is the interest rate and t is the time in years, Determine the time (to the nearest tenth of a year) when the amount paid toward interest is the same as the amount paid toward the reduction principle.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
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Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
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A $240,000 home mortgage for 30 years at a 3.725% interest rate has a monthly payment of $1108. The models for the amount paid toward interest u and the amount paid towards the reduction in principle v are below:
u = M - (M - Pr/12)(1 + r/12)12t and v = (M-Pr/12)(1+r/12)12t
given P is the amount invested in the mortgage. M is the monthly payment, r is the interest rate and t is the time in years, Determine the time (to the nearest tenth of a year) when the amount paid toward interest is the same as the amount paid toward the reduction principle.
Given that,
- The amount invested in the mortgage is, dollars.
- Monthly payment is, dollars.
- The rate of interest, .
The model for the amount paid toward interest is given by,
The model for the amount paid towards the reduction in principle is given by,
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