(a) Explanation Given: The monthly payment can be computed by P = 20000 ⋅ r 1 − ( 1 + r 12 ) − 360 . Where P be the monthly payment and r is the rate of interest per year. Formula used: The formula to calculate the differential of a function h ( x ) = [ g ( x ) ] n by General Power Rule is, h ′ ( x ) = n [ g ( x ) ] n − 1 g ′ ( x ) The formula to calculate the differential of a function h ( x ) = [ g ( x ) f ( x ) ] by Quotient Rule is, h ′ ( x ) = f ( x ) g ′ ( x ) − f ′ ( x ) g ( x ) f 2 ( x ) The formula to calculate the monthly payment P is given by, P = 20000 ⋅ r 1 − ( 1 + r 12 ) − 360 Calculation: Differentiate the function P = 20000 ⋅ r 1 − ( 1 + r 12 ) − 360 with respect to r on both sides. d d r ⋅ P = d d r ( 20000 ⋅ r 1 − ( 1 + r 12 ) − 360 ) ⋅ ( d r ) = 20000 [ [ 1 − ( 1 + r 12 ) − 360 ] ⋅ (b) To determine The monthly mortgage payment when the interest rate increase from the present rate 5 % /year to 5.2 % /year, to 5.3 % /year, 5.4 % /year and 5.5 % /year.

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

10th Edition

ISBN: 9781305657861

Author: Soo T. Tan

Publisher: Cengage Learning

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Question

Chapter 3.7, Problem 46E

(a)

To determine

To find: The derivative of the function P.

(b)

To determine

The monthly mortgage payment when the interest rate increase from the present rate 5% /year to 5.2% /year, to 5.3% /year, 5.4% /year and 5.5% /year.

Expert Solution & Answer

Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

Ch. 3.1 - State the following rules of differentiation in...Ch. 3.1 - Prob. 2CQ Ch. 3.1 - Prob. 3CQ Ch. 3.1 - Prob. 4CQ Ch. 3.1 - Prob. 1E Ch. 3.1 - Prob. 2E Ch. 3.1 - Prob. 3E Ch. 3.1 - Prob. 4E Ch. 3.1 - Prob. 5E Ch. 3.1 - Prob. 6E

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AUTO TRANSMISSIONS .AND FUEL ECONOMY In trying to...Ch. 3.5 - Prob. 32E Ch. 3.5 - Prob. 33E Ch. 3.5 - Prob. 34E Ch. 3.5 - Prob. 35E Ch. 3.5 - Prob. 36E Ch. 3.5 - Prob. 37E Ch. 3.5 - Prob. 38E Ch. 3.5 - Prob. 39E Ch. 3.5 - Prob. 40E Ch. 3.5 - Prob. 41E Ch. 3.5 - Prob. 42E Ch. 3.5 - Prob. 43E Ch. 3.5 - Prob. 44E Ch. 3.5 - Prob. 45E Ch. 3.5 - Prob. 46E Ch. 3.5 - Prob. 47E Ch. 3.5 - Prob. 48E Ch. 3.5 - Prob. 49E Ch. 3.5 - Prob. 50E Ch. 3.5 - Prob. 1TE Ch. 3.5 - Prob. 2TE Ch. 3.5 - Prob. 3TE Ch. 3.5 - Prob. 4TE Ch. 3.5 - In Exercises 1-8, find the value of the second...Ch. 3.5 - Prob. 6TE Ch. 3.5 - Prob. 7TE Ch. 3.5 - Prob. 8TE Ch. 3.6 - Prob. 1CQ Ch. 3.6 - Prob. 2CQ Ch. 3.6 - Prob. 3CQ Ch. 3.6 - Prob. 4CQ Ch. 3.6 - Prob. 1E Ch. 3.6 - Prob. 2E Ch. 3.6 - Prob. 3E Ch. 3.6 - Prob. 4E Ch. 3.6 - Prob. 5E Ch. 3.6 - Prob. 6E Ch. 3.6 - Prob. 7E Ch. 3.6 - Prob. 8E Ch. 3.6 - Prob. 9E Ch. 3.6 - Prob. 10E Ch. 3.6 - Prob. 11E Ch. 3.6 - Prob. 12E Ch. 3.6 - Prob. 13E Ch. 3.6 - Prob. 14E Ch. 3.6 - Prob. 15E Ch. 3.6 - 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Volume of a Cylinder The volume of a...Ch. 3.6 - Prob. 40E Ch. 3.6 - Prob. 41E Ch. 3.6 - Prob. 42E Ch. 3.6 - Prob. 43E Ch. 3.6 - Prob. 44E Ch. 3.6 - Prob. 45E Ch. 3.6 - Prob. 46E Ch. 3.6 - Prob. 47E Ch. 3.6 - PRODUCTION FUNCTION FOR A FURNITURE COMPANY The...Ch. 3.6 - Prob. 49E Ch. 3.6 - Prob. 50E Ch. 3.6 - Prob. 51E Ch. 3.6 - Prob. 52E Ch. 3.6 - Prob. 53E Ch. 3.6 - Prob. 54E Ch. 3.6 - Prob. 55E Ch. 3.6 - Prob. 56E Ch. 3.6 - Prob. 57E Ch. 3.6 - Prob. 58E Ch. 3.6 - Prob. 59E Ch. 3.6 - Prob. 60E Ch. 3.6 - Prob. 61E Ch. 3.6 - Prob. 62E Ch. 3.6 - Prob. 63E Ch. 3.6 - Prob. 64E Ch. 3.6 - Prob. 65E Ch. 3.6 - 66. 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The derivative of the function P .

Solution Summary: The author explains the formula to calculate the monthly payment P by calculating the differential of a function.

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To find: The derivative of the function P.

The monthly mortgage payment when the interest rate increase from the present rate 5% /year to 5.2% /year, to 5.3% /year, 5.4% /year and 5.5% /year.

Chapter 3 Solutions