Answer:
page 1:
51 years
$98.78
639546.64 (i think)
Page 2:
213 months
17.8 years
321 months
26.8 years
1128.9 months
88.8 years
I would probably choose the second plan because it's rather unlikely that i live past 90
Step-by-step explanation:
page 1
Let's assume the payments are at the end of the month
66-15= 51 years
effective rate: .075/12=.00625
[tex]700000=x\frac{(1+.00625)^{51*12}-1}{.00625}\\x=98.77973387[/tex]
which i guess we can round to 98.78
700000-98.78*(51*12)= 639546.64
This number is really really high and so maybe you want to double check it
page 2
effective rate: .051/12=.00425
[tex]700000=5000\frac{1-(1+.00425)^{-n}}{.00425}\\.405=(1+.00425)^{-n}\\log_{1.00425}.405=-n\\n=213[/tex]
213 months
213/12= 17.8 years
[tex]700000=4000\frac{1-(1+.00425)^{-n}}{.00425}\\.25625=(1.00425)^{-n}\\log_{1.00425}.25625\\n=321[/tex]
321 months
321/12=26.8 years
[tex]700000=3000\frac{1-(1+.00425)^{-n}}{.00425}\\.008333333=(1.0045)^{-n}\\log_{1.0045}.00833333=-n\\n=1128.9[/tex]
1128.9 months
1128.9/12= 94.1 years
1066 months
1066/12= 88.8 years
