The formula for computing the amortized mortgage payment for a home loan is I(1 I)N (1 I)N- 1 Where:M Monthly Payment P- Mortgage Principal I-Monthly Interest N-Number of Months There are three parts to this assignment

Subject:MathPrice:2.85 Bought3

Share With

The formula for computing the amortized mortgage payment for a home loan is I(1 I)N (1 I)N- 1 Where:M Monthly Payment P- Mortgage Principal I-Monthly Interest N-Number of Months There are three parts to this assignment. Make sure that you show all of your work to receive full credit for your answers. This could come in handy when you decide to buy a house of your own. To reduce rounding error, round to the eighth decimal place. Part I (5 points) Find the inverse of the formula above assuming that I and N are the constants, 0.00416667 (5% rate divided by 12) and 360 (30 years) respectively. NOTE: To make the notation less confusing, you can switch to f(x) or y for M, and x for P. When you find the inverse, / '(x) represents P, and x represents M.