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Question - You are offered a $200,000 mortgage. Payments are to be made monthly. Assume a fixed interest rate.
A. Plot a graph of the payment as a function of the interest rate. Use an annual interest rate ranging from 0% to 12% (remember to divide the interest rate by 12 to obtain a monthly rate). Assume that the mortgage is to be repaid over 30 years.
B. Plot a graph of the total interest paid over the life of the loan as a function of the interest rate ranging from 0% to 12% (remember to divide the interest rate by 12 to obtain a monthly rate). Assume that the mortgage is to be repaid over 30 years.
C. Plot a graph of the total interest paid as a function of the number of years for which the loan taken out. Use a range from 15 to 30 years. Assume a 6% interest rate.
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