Question
The amount of money that a lending institution will allow you to borrow mainly depends on the interest rate and your annual income. The following
The amount of money that a lending institution will allow you to borrow mainly depends on the interest rate and your annual income. The following data represent the annual income, I, required by a bank in order to lend L dollars at an interest rate of 7.5% for 30 years in October 2006.
Annual Income, I ($) | Loan Amount, L ($) |
15,000 | 50,100 |
20,000 | 66,800 |
25,000 | 83,400 |
30,000 | 100,100 |
35,000 | 116,800 |
40,000 | 133,400 |
45,000 | 150,100 |
50,000 | 166,900 |
55,000 | 183,500 |
60,000 | 200,200 |
65,000 | 217,000 |
70,000 | 233,500 |
Use a graphing utility to find the line of best fit to the data and then determine the loan amount that an individual would qualify for if her income is $57,000. Round the answer to the nearest dollar.
The line of best fit is: y = __________?_________
With an income of $57,000 a person can borrow $_________?________
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