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The term t (in years) of a $120,000 home mortgage at 10% interest can be approximated by t = 5.315 / (-6.7968 + log(x)), x > 1000, where x is the monthly payment in dollars. [this problem is meant to be solved using a graphing utility]
a) Use a graphing utility to graph the model. [No problem; I have Maple]
b) Use the model to approximate the term of a home mortgage for which the monthly payment is $1167.41. What is the total amount paid?
c) Use the model to approximate the term of a home mortgage for which the monthly payment is $1068.45. What is the total amount paid?
d) Find the instantaneous rate of change of t with respect to x when x = 1167.41 and x = 1068.45.
e) Write a short paragraph describing the benefit of the higher monthly payment.
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