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5. Ifyou borrow t dollars at an annual interest rate of r [in decimal form, so 5% is written as 0.05}, for a period of
5. Ifyou borrow t dollars at an annual interest rate of r [in decimal form, so 5% is written as 0.05}, for a period of m years, then the size of the monthly payment, M, is given by the annuity equation I. = g [1 (1 + r f 12)12m]. The author needs to borrow $150,000 to buy new house that he wants, and he can only afford to pay $600 per month. Assuming a 30-year mortgage, use the bisection method to determine what interest rate he can afford to pay. [Should the author perhaps find some rich relative to help him out here?) Pick up an appropriate starting interval for this problem. How many iterations does it take the Bisection method to obtain a solution that is accurate to within 105
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