Debt refinancing when a debt is refinanced sometimes the


Question: Debt refinancing When a debt is refinanced, sometimes the term of the loan (that is, the time it takes to repay the debt) is shortened. Suppose the current interest rate is 7%, and a couple's current debt is $100,000. The monthly payment R of the refinanced debt is a function of the term of the loan, t, in years. If we represent this function by R = f(t), then the following table defines the function.

1517_t.png

(a) If they refinance for 20 years, what is the monthly payment? Write this correspondence in the form R = f(t).

(b) Find f(10) and write a sentence that explains its meaning.

(c) Is f(5 + 5) = f(5) + f(5)? Explain.

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Basic Statistics: Debt refinancing when a debt is refinanced sometimes the
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