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Amanda [17]
2 years ago
4

The Smiths were just approved for a 25 year mortgage at an 11% fixed rate. If they had not filed bankruptcy in the past, they co

uld have gotten a rate of 7%. If their loan amount is $128,000, how much more per month will the Smiths be paying for their mortgage as a result of their bankruptcy? a. $349.86 b. $125,840.78 c. $904.68 d. $235.09
Mathematics
2 answers:
stepan [7]2 years ago
8 0
To answer the problem, the amortization formula will be of great help. The formula is as follows:

A = P × ((r(1+r)ⁿ)/((1+r)ⁿ-1))
A = is the amortization
P = is the principal
r = is the rate
n = is the period

1. Compute for the amortization using the 11% interest rate.

A = $128000 × ((0.11(1.11)²⁵)/((1.11)²⁵-1))
   = $1,254.54
*if solve manually, the answer should be divided by 12 because it was on a monthly basis.

2. Compute for the amortization using the 7% interest rate. 

A = $128000 × ((0.07(1.07)²⁵)/((1.07)²⁵-1))
    = $904.68
*if solve manually, the answer should be divided by 12 because it was on a monthly basis.

3. Thus, the increase in monthly amortization as a result of higher interest rate is $349.86.
Liula [17]2 years ago
4 0
So your answer is A ;)
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frankwithgertrued=35.5 for 4 hours
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12,400 x one and one fifth = ________. Will the product of this equation be less than or greater than 12,400? Explain your reaso
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Answer:

Your answer would be 14,880, so it would be greater than 12,400.

12,400 * 1 1/5 = 14,880

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Triangles A B C and X Y Z are shown. Which would prove that ΔABC ~ ΔXYZ? Select two options. StartFraction B A Over Y X = StartF
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Answer: Answer is 3

BC        6

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XY         3

Step-by-step explanation:

The statements below can be used to prove that the triangles are similar.

On a coordinate plane, right triangles A B C and X Y Z are shown. Y Z is 3 units long and B C is 6 units long.  

A B Over X Y = 4 Over 2

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A C Over X Z = 52 Over 13  

△ABC ~ △XYZ by the SSS similarity theorem.

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"An ordinance requiring that a smoke detector be installed in all previously constructed houses has been in effect in a particul
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Answer:

a) Probability that the claim is rejected when the actual value of p is 0.8 = P(X ≤ 15) = 0.0173

b) Probability of not rejecting the claim when p = 0.7, P(X > 15) = 0.8106

when p = 0.6, P(X > 15) = 0.4246

c) Check Explanation

The error probabilities are evidently lower when 15 is replaced with 14 in the calculations.

Step-by-step explanation:

p is the true proportion of houses with smoke detectors and p = 0.80

The claim that 80% of houses have smoke detectors is rejected if in a sample of 25 houses, not more than 15 houses have smoke detectors.

If X is the number of homes with detectors among the 25 sampled

a) Probability that the claim is rejected when the actual value of p is 0.8 = P(X ≤ 15)

This is a binomial distribution problem

A binomial experiment is one in which the probability of success doesn't change with every run or number of trials (probability that each house has a detector is 0.80)

It usually consists of a number of runs/trials with only two possible outcomes, a success or a failure (we are sampling 25 houses with each of them either having or not having a detector)

The outcome of each trial/run of a binomial experiment is independent of one another.

Binomial distribution function is represented by

P(X = x) = ⁿCₓ pˣ qⁿ⁻ˣ

n = total number of sample spaces = 25 houses sampled

x = Number of successes required = less than or equal to 15

p = probability of success = probability that a house has smoke detectors = 0.80

q = probability of failure = probability that a house does NOT have smoke detectors = 1 - p = 1 - 0.80 = 0.20

P(X ≤ 15) = Sum of probabilities from P(X = 0) to P(X = 15) = 0.01733186954 = 0.01733

b) Probability of not rejecting the claim when p= 0.7 when p= 0.6

For us not to reject the claim, we need more than 15 houses with detectors, hence, th is probability = P(X > 15), but p = 0.7 and 0.6 respectively for this question.

n = total number of sample spaces = 25 houses sampled

x = Number of successes required = more than 15

p = probability that a house has smoke detectors = 0.70, then 0.60

q = probability of failure = probability that a house does NOT have smoke detectors = 1 - p = 1 - 0.70 = 0.30

And 1 - 0.60 = 0.40

P(X > 15) = sum of probabilities from P(X = 15) to P(X = 25)

When p = 0.70, P(X > 15) = 0.8105639765 = 0.8106

When p = 0.60, P(X > 15) = 0.42461701767 = 0.4246

c) How do the "error probabilities" of parts (a) and (b) change if the value 15 in the decision rule is replaced by 14.

The error probabilities include the probability of the claim being false.

When X = 15

(Error probability when p = 0.80) = 0.0173

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when p = 0.60, error probability = 1 - 0.4246 = 0.5754

When X = 14

(Error probability when p = 0.80) = P(X ≤ 14) = 0.00555

when p = 0.70, error probability = P(X ≤ 14) = 0.0978

when p = 0.60, error probability = P(X ≤ 14) = 0.4142

The error probabilities are evidently lower when 15 is replaced with 14 in the calculations.

Hope this Helps!!!

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