Mortgage payment ULUI Mortgage Payment Function Analyzing changes in a function of three variables The monthly payment P on a mortgage loan of A dollars at an annual rate of r (as a decimal) for years is given by this function of three variables: P(A,7,t)= A 1-1+2 In the following problems, a consumer has been quoted for a mortgage on a 30-year loan of $290000 at an annual rate of 3.75%. Round any dollar amounts to the nearest cent. Provide all answers in the spaces provided, but attach all work on your own paper (already stapled when you come to class). Exercises
1. Determine the monthly payment. (10 pts) ӘР ӘР ӘР і
2. Determine the partial derivatives using a computer algebra system. Attach "ah oro screenshots of each of these partial derivatives! (15 pts) (10 pts) (10 pts) (10 pts)
3. Use differentials to approximate the change in monthly payment (from #1) if:

a. the loan amount decreases to $275000
b. the rate decreases to 3.5%, or
c. the number of years decreases to 28. Do each part separately.

4. Use differentials to approximate the change in the monthly payment (from #1) if:

a. the loan amount increases by 10%, or
b. the rate increases by 10% (of the current rate), or
c. the number of years increases by 10%. Do each part separately.

5. Now assume all three changes in #3 occurred simultaneously:

a. Estimate the change in monthly payment using differentials.
b. Determine the actual change in the monthly payment. (10 pts) (10 pts) (10 pts) (10 pts) (5 pts)