[B] A loan of $210000 is repaid over 20 years by monthly payments of $1575. Use two iterations of the Newton-Raphson method starting with the initial guess of an annual interest rate of 12% (compounded monthly), to determine the annual interest rate. NOTE: IfP is borrowed at a rate of r per period, and is repaid over N periods by payments of Y, then: Pr + Y[(1+r)-N – 1] = 0 If f(r) = 210000r + 1575[(1+r) 400 – 1] and f'(r) = k – a(1+ br) €, then: k =
[B] A loan of $210000 is repaid over 20 years by monthly payments of $1575. Use two iterations of the Newton-Raphson method starting with the initial guess of an annual interest rate of 12% (compounded monthly), to determine the annual interest rate. NOTE: IfP is borrowed at a rate of r per period, and is repaid over N periods by payments of Y, then: Pr + Y[(1+r)-N – 1] = 0 If f(r) = 210000r + 1575[(1+r) 400 – 1] and f'(r) = k – a(1+ br) €, then: k =
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 60SE: The formula for the amount A in an investmentaccount with a nominal interest rate r at any timet is...
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