11.3 11.4: Problem 8 The monthly payment for a home loan is given by a function f(P, r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in...

Extracted text: 11.3 11.4: Problem 8 The monthly payment for a home loan is given by a function f(P, r, N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.06. If P = 250000, r = N = 336(a 28-year loan), then the monthly payment is f(250000, 0.06, 336) 0.06, and 1181. Furthermore, with these values we have af af 0.0079, af 5505, -1.6056 ƏP dr ƏN Estimate: (a) The change in monthly payment per 4000 increase in loan principal: Af 2 dollars (b) The change in monthly payment if the interest rate changes from r = 0.06 to r = 0.045: dollars (c) The change in monthly payment if the length of the loan changes from 28 to 31 years: Af = dollars