You plan to take out a? 30-year fixed rate mortgage for ?$100,000. Let? P(r) be your monthly payment if the interest rate is? r% per? year, compounded monthly.
Interpret the equation and select the correct answer below:
P′(5)=61.12
a. If the interest rate decreases from 6?% to 5?%, the monthly payment will increase by approximately ?$536.82.
b. If the interest rate increases from 5?% to 6?%, the monthly payment will increase by approximately ?$61.12.
c. If the interest rate increases from 5?% to 6?%, the monthly payment will decrease by approximately ?$61.12.