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Problem 4 If you borrow L dollars at an annual interest rate of r, for...

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Problem 4 If you borrow L dollars at an annual interest rate of r, for a period of m years, then the size of the montly payment, M, is given by the annuity equation: L = MX L 1-(1+r)-12m r An author needs to borrow $225,000 to buy the new house that he wants, and he can only afford to pay $800 per month. Assuming a 30 year mortgage, use the bisection method to determine what interest rate he can afford to pay. Use the intial endpoints X = 0.001, XR = 0.002 and stop criterion e = 0.0001. Should the author perhaps find some rich relatives to help him out here? Problom 5

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