Note: No special formulas are necessary to answer the questions asked in this problem. Please analyze and use only the description and graph provided to answer the parts to this question. 3. Becky takes out a 30-year mortgage for which her monthly payment is $1400. During the early years of the mortgage, most of each payment is for interest and the rather small remainder is for principal. As time goes on, the portion of each payment that goes to interest decreases while the portion for principal increases, as shown in the following graph: 1500 1400- 1300 interest 1200 1100- 1000 900- 800- 700- -600- 500 400 300 200 Principal 100 100- 15 20 a. At the beginning of the loan, approximately how much of the $1400 monthly payment goes toward principal? b. Approximately how much of the $1400 monthly payment goes for interest in year 5? c. In what year will the monthly payment be equally divided between interest and principal?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Note: No special formulas are necessary to answer the questions asked in this problem. Please
analyze and use only the description and graph provided to answer the parts to this question.
3. Becky takes out a 30-year mortgage for which her monthly payment is $1400. During the early years of
the mortgage, most of each payment is for interest and the rather small remainder is for principal. As time
goes on, the portion of each payment that goes to interest decreases while the portion for principal
increases, as shown in the following graph:
1500
1400-
1300
interest
1200
1100-
1000
900-
800-
700-
-600-
500
400
300
200
Principal
100
100-
15
20
a. At the beginning of the loan, approximately how much of the $1400 monthly payment goes toward
principal?
b. Approximately how much of the $1400 monthly payment goes for interest in year 5?
c. In what year will the monthly payment be equally divided between interest and principal?
Transcribed Image Text:Note: No special formulas are necessary to answer the questions asked in this problem. Please analyze and use only the description and graph provided to answer the parts to this question. 3. Becky takes out a 30-year mortgage for which her monthly payment is $1400. During the early years of the mortgage, most of each payment is for interest and the rather small remainder is for principal. As time goes on, the portion of each payment that goes to interest decreases while the portion for principal increases, as shown in the following graph: 1500 1400- 1300 interest 1200 1100- 1000 900- 800- 700- -600- 500 400 300 200 Principal 100 100- 15 20 a. At the beginning of the loan, approximately how much of the $1400 monthly payment goes toward principal? b. Approximately how much of the $1400 monthly payment goes for interest in year 5? c. In what year will the monthly payment be equally divided between interest and principal?
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